Commodity Trade Mantra

Posts Tagged ‘Crude Oil Market’

End of Driving Season Means More Declines In Crude Oil Prices

The driving season ends next month, which is when most refineries shut down for maintenance after operating at near-full capacity during the summer months. This is—historically—when gasoline demand subsides. The end of summer travels is also when gasoline stockpiles in the U.S. could increase, further pushing down crude oil prices.

Crude Oil Prices Spike After EIA Reports Surprise Draw

The EIA sees non-OPEC production dropping 0.7 million bpd this year, while it sees OPEC production up 0.9 million bpd this year & up an additional 0.7 million bpd in 2017 (h/t Iran). It now pegs crude oil demand growth at 1.4 million bpd for this year (up 0.3 million bpd from last month), with the increase in large part due to higher Chinese and Indian demand.

Are Central Banks Running the Crude Oil Market or Just the World?

The price of oil has been rising, no matter how bad the oversupply news gets. How today’s oil prices are really determined is done by a process so opaque only a handful of major oil trading banks have any idea who is buying or selling oil futures or derivative contracts that set physical oil prices in this strange new world of “paper oil”.

Why OPEC Oil Production Freeze Could Pave The Way For Actual Cuts

The purpose of the Doha agreement is to put a floor under crude oil prices—and as a first step in raising prices in the future. The freeze is a starting point, which, over time could lead to production cuts as major non-North American producers gain confidence in the intentions of their fellow producers and therefore bring forward balancing the global crude oil market.

Stronger Dollar And OPEC Inaction Force Crude Oil Below $40

Looking at global offshore rigs, even though 40 out of 350 rigs have been taken out of the market in the price rout of the last year, we need to see up to 100 rigs go offline to halt the supply glut. The descent into disarray by OPEC has prompted WTI crude oil to plummet into thirty-dollardom; a strengthening dollar is only serving to strong-arm the crude oil complex lower.

Gold And Silver: Is Swiss National Bank Rally Enough For A Change?

The world events are circling the drain like an unstoppable eddy. If the wealthiest of countries are accumulating gold and silver as much as possible, following their lead is a worthy mantra. The current price of gold and silver is not that important. Having and holding those proven forms of real money can only be a very wise undertaking.

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