Commodity Trade Mantra

Posts Tagged ‘Crude Oil futures’

Gold Plated Yuan & Cryptocurrencies will soon attack the US Dollar

Some 70 hedge funds have bought bitcoin. The crypto currency’s price volatility provide something traditional markets are lacking…action. China has wanted to unshackle itself from the dollar for a long time and now they’re giving yuan-denominated gold contracts a third try. The dollar will soon be under attack: both from a gold-plated yuan and the cryptocurrencies.

Will Yuan Priced Crude Oil Futures Backed by Gold be Appealing to Oil Exporters?

China is preparing to launch a crude oil futures contract denominated in Yuan. Backing the yuan-priced futures with gold would be appealing to oil exporters, especially to those who would rather avoid US dollars in trade. It is a mechanism which is likely to appeal to oil producers who prefer to avoid using dollars & are yet not ready to accept being paid in yuan for oil sales to China.

With Several Opposing Factors, can we expect Higher Oil Prices anytime soon?

One factor that could prevent oil prices from falling further is the possibility that prices floundering in the mid-$40s actually puts a lid on shale production. If U.S. shale underperforms over the next year, the OPEC deal could succeed in balancing the market. But if U.S. shale continues to rise & OPEC fails to extend its deal beyond the first quarter of 2018, oil prices could fall to $30 per barrel.

Futures Market Trend Indicates The Return Of Bearishness In Oil Markets

Speculative movements in the futures market don’t dictate everything, but they are good indicators of market sentiment. Net-long positions in crude futures reduced for a third week in a row. Also the fact that the oil glut persists despite what should be bullish trends – high OPEC compliance, growing demand, and the initial signs of falling inventories – suggests that lower oil prices could be forthcoming.

What's Really Driving the Rally in Crude Oil Prices?

Does the huge rally in crude oil mean it’s time for us to bet on higher prices? Or is this rally doomed to fizzle? As crude oil has soared over 50% since Feb. 11, the number of bets on increased prices has barely budged. It’s been a hell of a bottom-bouncer so far. But we need to see more evidence before we’re ready to declare this new crude oil rally alive & well.

Why Is Oil Price Tumbling: Oil Hedges Were Just Rolled Over

As a result of a new bevy of hedges put on around $50/barrell which coupled with the recent decline in the oil VIX leading to slightly cheaper hedges, firms can once again continue to produce at even lower prices as they have rebased their hedges thereby buying themselves a few more months of oil production at even lower prices – offsetting Saudi record production pressures.

The Multi-Trillion Dollar Oil Market Swindle

Assuming $55 per barrel for oil, the market for crude oil is about $5.2 billion per day. Each $10/Barrel change is worth nearly $1 billion/day or $365 Billion/year for the worldwide crude oil market. Add the worldwide equity market caps of oil and oil market related equities and debt you have a scandal that is in the trillions; a number that cannot be ignored.

Gold Trading to Open up to Foreigners in Shanghai

Shanghai Gold Exchange is poised to get the jump on other mainland equity & commodity trading bourses by launching a gold trading platform in the city’s free-trade zone open to foreign investors. Foreign institutions & individuals could open accounts in the zone that are designated for gold trading.

Crude Oil Declines

Crude Oil remains weak on Escalating Eurozone Debt Crisis & Weakening Fuel Demand – Gets Support on Lower than Expected […]

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