Commodity Trade Mantra

Posts Tagged ‘Oil Price’

The True Value of Gold (Economic Code) Finally Revealed

The true value of gold is much higher than the spot price quoted in the market. This is due to several factors, but the most important reason is misunderstood by just about every economist and monetary scientist in the world today. Those who are able to understand the information in this article, will finally be able see the value of gold (money) in a totally different way.

Massive Debt Overhang & Energy Crisis Indicate Higher Gold and Silver Prices

The debt in the energy industry and the debt in the system is too high. It’s $6 of debt to get $1 of GDP. It’s a disaster. Now how long can this go on? It could probably go on a little bit longer, but the fundamentals will soon kick in & when those fundamentals kick in, by gosh, paper assets will simply evaporate. All this points to much higher gold and silver prices.

The Oil Price Ceiling Has Been Set: "Above $40 And We Start Pumping Again"

The cure for low oil prices is low oil prices & as more shale companies halt production, the 3 mmb/d oversupplied oil market will slowly return to equilibrium. The oil price war is about to enter its far more vicious, and far more lethal phase, and while it is unclear who ultimately wins, whether it is Shale or the Saudis, the loser is clear: anyone who bought into bets of an imminent oil bounce.

Cash Flow Negative US Energy Companies Have $325 Billion In Debt Among Them

With the topic of distress among U.S. oil and gas exploration and production companies becoming more important with every passing day that oil not only continues to drop, but certainly fails to rebound to levels that allow US energy companies to return to a cash flow positive state, we would like to show just how much debt is at stake.

This Is Why $20 Oil Price Is A Possibility

I believe that another plunge in the oil price is required to thrust a dagger through the heart of US shale drillers and the banks that have supported them. Low oil price will at some point result in the situation reversing & prices will turn very quickly. But before that can happen, production momentum needs to be switched off & I dare say that requires a sharply lower oil price.

Is Oil Going to $70 or $20? Answer May Surprise You

Is this oil bounce for real? The legendary T. Boone Pickens thinks oil’s going to $70 before the end of the year. Then you’ve got the infamous vampire squids at Goldman Sachs telling everyone to get ready for an oil bear that’ll last for 15 years—and send crude down as low as $20 per barrel. So who’s right? Take a look for yourself.

Silver Price and iShares Silver Trust - SLV Going to $12

The movement from $17.5 to $50 from 2010 to 2011 had only a small correction. It just played as a gigantic parabola. What we know is that parabolas are reverted back below their previous channels. Based on long-term demand line, formed during a period of over 12 years, the support for silver price is around $11-$12.

Gold is (Once Again) Money

What China and Russia have in common is they are both protecting themselves against dollar & oil price manipulation by converting their export sales into gold. They are using gold to hedge dollar exposures in Treasury securities & oil respectively. While investors may have missed this development, other central banks have not.

Is Market Sentiment Shifting to Gold?

When you look at the world economy, there’s no shortage of worries. Most market strategists do not view gold as a currency but only as a commodity. The rule: dollar up, gold down. But on viewing gold as a currency compared to many other currencies, including euro, ruble, yen & rupee, it has been a good place to be in over the last year.

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.

Brent Plunge To $60 If OPEC Fails To Cut, "Profit Recession" To Follow

If OPEC fails to agree a cut, prices will drop “further and quite quickly”, with U.S. crude oil possibly sliding to $60. If Brent does indeed tumble to $60, what happens? Then the most likely next outcome is a Profit recession, which while left unsaid, will almost certainly assure a full-blown, economic one as well.

The Illusion that Lower Oil Prices Are Positive

The Oil Head-Fake: The essence of the Oil Head-Fake Dynamic is the inevitable drop in oil prices resulting from a sharp decline in oil demand (i.e. global recession) will trigger disruption of the global oil supply chain that will eventually push oil prices higher than most currently think possible.

Will Shale Oil Fuel Manufacturing Boom in the US?

Chris Guith the senior Vice President of Policy for the Institute for 21st Century Energy pointed out how large a benefit the shale revolution is for the U.S. economy. Since 2007, all non-farm jobs fell 2.6%. Oil industry jobs rose 38.6%. In 2012, there were 2.1 million jobs in the sector. By 2025, there will be over 4 million jobs.

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