Via Energy and Gold.com: A large institutional trader decided today was a good time to put on a large and slightly complex options trade in the XLE (Energy Select Sector ETF ). This options trade which is called a risk reversal involved buying 30,000 June $61.50 strike XLE call options for a debit of roughly… Continue Reading
Via Energy & Gold.com: The Federal Reserve finds itself in a tricky situation heading into Wednesday’s FOMC announcement. There has been a considerable build-up over the past several weeks (primarily from strong employment reports) which has led to the market anticipating a 25 basis point hike the Fed Funds Rate. However, the shakeout in the… Continue Reading
Via Energy and Gold.com: With all the messiness that’s occurring in Syria it’s surprising that something worse (from a geopolitical standpoint) than this morning’s shootdown of a Russian fighter jet by Turkey hasn’t already happened. Here’s a cute graphic from Citi that hopes to explain what is a very murky situation in Syria: Crude… Continue Reading
Newsletter writer Keith Schaefer of the acclaimed Oil and Gas Investments Bulletin stopped by this morning at CEO Chat, the investment conference in your pocket. And the questions – and Keith’s answers – came fast and furious: upstream, downstream and everything in between. Keith is offering CEO.CA subscribers a one-month test drive of his solid newsletter… Continue Reading
Via Energy and Gold.com: Noted market technician and fund manager J.C. Parets is a long time friend of CEO.CA and EnergyandGold.com. We had the pleasure of sitting down with J.C. and picking his chart filled brain as to what he’s seeing right now across global markets and asset classes. As is his style, J.C. did… Continue Reading
Michael Berry of Disruptive Discoveries Journal is out with a good slide deck on macro and metals themes that he presented earlier this month for the Quebec Mineral Exploration Association. Mining investors know the story well – excess supply and insufficient demand have hit commodity prices hard, as well as the energy-reliant Canadian economy. Meanwhile, debt… Continue Reading
Almost exactly 2 years ago, CEO.CA correspondent Jamie Keech interviewed Liberal natural resources critic Geoff Regan about the party’s ideas on natural resources development, the environment, First Nations and more. The Liberal party won a majority of seats in Monday’s federal election and while Prime Minister-elect Justin Trudeau will not name a cabinet until Nov.… Continue Reading
Via Energy and Gold.com: An insightful graphic from Goldman Sachs Investment Research which highlights the recent evolution of the global crude oil supply-demand balance and where it’s projected to go over the next 15 months: The market is currently oversupplied by nearly 2 million barrels per day, however, this oversupply is projected to turn… Continue Reading
Via Energy and Gold.com: Two charts that excellently illustrate the commodities bear market which has accelerated to record depths during the last few years: Love them or hate them, precious metals exchange-traded products (ETFs, ETNs, etc.) soared to record levels in late 2012 following the ECB and Federal Reserve’s plunge into open-ended quantitative easing. More than… Continue Reading
Via Energy and Gold.com: Remember this chart that was passed around quite a bit earlier in the year? This chart has become important again as crude oil prices flirt with the $40/barrel level. Cash costs (variable operating costs) are distinct from the overall cost of an oil project because they are the costs associated… Continue Reading
Via Energy and Gold.com: If the Saudis intention is to damage US shale oil production as they maintain record crude oil outputs despite a more than 50% drop in the price of oil in the last year, the following two charts illustrate that they are achieving their goal: Since March there has been a… Continue Reading
Via Energy and Gold.com: If I didn’t know better I could have never guessed that crude oil is down nearly 50% in less than a year. The Houston real estate market is white hot with residential listings regularly going for above asking price and sellers are finding eager buyers in a matter of days. Houston… Continue Reading
Via Energy and Gold.com: It might be hard to believe but WTI crude has rallied nearly 50% since March 17th. While crude’s recent rally has certainly taken the crowd by surprise (as illustrated by tremendous short covering in the exchange traded fund USO) there’s ample reason to believe that crude oil’s upside move may have… Continue Reading
Via Energy and Gold.com: We are seeing a very interesting dynamic take hold in crude oil futures markets: In recent weeks we have witnessed a confluence of forces; speculators have covered shorts in large numbers while also aggressively adding to long positions, meanwhile, producers have hedged aggressively by selling futures contracts in order to lock… Continue Reading
Via Energy and Gold.com: I came across two powerful China charts from J.P.Morgan this weekend: During the last decade the correlation between Chinese monetary conditions/nominal GDP growth and commodities is almost uncanny; the CRB bottomed at the exact month that China monetary conditions bottomed in early 2009 and began rolling over again in 2011 just… Continue Reading
