Commodity Trade Mantra

Posts Tagged ‘Brent Crude’

With A Rebound In Oil Prices, Will Drilling Activity Return?

On June 6, Morgan Stanley released a report saying that “all eyes” are on the U.S. to see if drilling will return now that oil prices are back above $50, after having rallied roughly 85% since February. There are a few early signs that drilling is starting to begin again. The oil rig count jumped by nine last week to 325 active oil rigs, the sharpest increase since December 2015.

China And India Rewrite The Rules Of The Oil And Gas Game

Asian oil markets are in a tremendous period of flux. Both China and India are using the drop in oil prices and the existing oil gut to their advantage. New partnerships are being formed and steps are being taken, which undermine the erstwhile major players. Each crisis brings about a change, and the current one is shifting the power from the suppliers to the consumers.

One-Fifth Of All Worldwide Stock Market Wealth Is Already Gone

As bad as things are in the U.S. right now, the truth is that we still have a long way to go to catch up with the rest of the planet. Around the world, many major stock market indexes are already down more than 30 or 40 percent. Overall, the MSCI All-Country World Index is now down 20 percent, which officially puts us in bear market territory.

Plunge In Oil Prices Prove You Shouldn't Try "Catching a Falling Knife"

Oil crashed in the second half of last year, falling from over US$100 to below US$45 in Jan 2015. Many thought it was a great buy & piled in to oil stocks. Oil turned up & then back down to make a new low in March. Again bargain hunters came in & oil began a hefty rally, trading back to US$60. Oil prices have now crashed to new lows. What do the bargain hunters think now? Still a bargain?

For The Oil Price - How Low Is Really Low?

An end to QE in the USA is implicated in recent global currency adjustments and the rout of the oil price and that is surely part of the story. But the OPEC policy of maintaining market share and over supply of either LTO or OPEC crude have also played a prominent role in Act 7 that is still being played out and still has a way to run before a new market equilibrium is reached.

Why Saudi Arabia Just Boosted Oil Production To A Record High

The problem for oil producers and investor is that the Saudis are not acting in isolation. The combination of rising U.S. production and rising Saudi production can only be bearish for oil prices. The prospect of oil testing its January low should not be ruled out, especially if Iran is given the green light to ramp up exports.

What America Does Not Understand About Russia & Oil

While successful this time around the Russian’s via Putin are more than able to cope with an oil rout for the near future. Already the devaluation of the Russian Rubble means that oil revenues will in fact be more in Rubles than last year since the devaluation is currently wider than the correction of the oil price itself.

Shale Liquidations Begin? Sub-$50 Oil Appears In North Dakota

While oil market analysts debate if oil will fall to $50, prices are already there in North Dakota. Cheaper price for North Dakota crude underscores how geographic & logistical hurdles can amplify the stress that plunging futures prices have put on drillers in new shale plays that have helped push US oil production to the highest level in 31 years.

Cheap Oil A Boon For The Economy? Think Again

Tumbling oil prices are a bonanza for global stock markets, provided the chief cause is a surge in crude supply rather than a collapse in economic demand. Roughly one third of the current oil slump is a shortfall in expected demand, caused by China’s industrial slowdown and Europe’s austerity trap.

Bankers Manipulation Of Gold & Silver: Proof In The Demand Data

The Banking Cartel needs to keep investors away from buying gold and silver because they are the Blinking Red Light that indicates something is very wrong with the financial system. To keep the public and investor demand limited in gold and silver, the Cartel is using price suppression tactics, including negative press via financial networks.

Shanghai Silver Warehouse Stocks Fall 24% In One Week

Since July, 131 tons, or 56% of total silver stocks were removed from the Shanghai Futures Exchange. At the beginning of Aug, there were 148 tons of silver on warrant at SFE. In just 3 weeks, 29% of the total inventory was removed. The majority of this decline took place last week when 22 tons were withdrawn on Friday alone.

Why Base Price Of Gold Should Be North Of $2,000

Base price of gold should be over $2,000 an ounce if we average gold-oil ratio for the previous four decades & when we factor in the ongoing geo-political events taking place in the Middle East & Russia-Ukraine as well as the peaking of global oil production. And that does not include the huge monetary printing & debt.

The ‘Shale Game’ Is the Future for Oil and Gas

Fewer investors are following the oil and gas sector in Alberta & British Columbia than in the US. But this is one the most important regions for oil and gas production in the world & new technology has drastically increased the amount of opportunity. The ‘shale game’ is real & the future for oil and gas.

Institutional Buying: The Coming Silver Game Changer

The sector that will have the largest impact on future silver investment demand will be institutional buying. As confidence in the Treasury & Bond markets begin to wane, we are going to see more institutions and retail investors rotate out of paper and into physical assets.

The Energy Factor to Push Gold to New Highs

Energy cost increases substantially in the gold mining industry today as they are extracting gold at 20 times less the yield as in late 1800’s. As ore grades decline, it takes a great deal more energy to extract and process the same or less metal.

follow us

markets snapshot


Market Quotes are powered by Investing.com India

live commodity prices


Commodities are powered by Investing.com India

our latest tweets

follow us on facebook