Investors can’t say definitively that the price of oil bottomed in the third week of March, but some very recent data released by the International Energy Agency (IEA) that supports the premise that a bottom is in. More on that in a moment. From a low near $43 per barrel WTI has been bumping around… Continue Reading
There are a lot of options for your hard earned capital and no shortage of folks wanting to tell you how to use it. Recent trends have been very profitable in different sectors. On the other hand, energy has displayed a horrendous previous 52 weeks. So here are 5 reasons not to invest in energy.… Continue Reading
Daily Commodity Chart Wrap 3/9/2015 via Energy and Gold.com: Copper Marginal Cost Percentiles The 90th percentile cost of producing copper is currently roughly $2.25/lb, it’s interesting that this level also coincides with the 200-month moving average (the same moving average where copper found support at the 2008-2009 lows). A powerful chart of gold net producer… Continue Reading
Via Energy and Gold.com: Tiny Quebec based oil & gas explorer Junex (JNX.V) staged an enormous rally last week which at one point saw its shares higher by more than 150% in just 4 trading sessions: The discovery of a conventional oil play that appears to have substantial exploration upside was enough to embolden investors… Continue Reading
Via Energy and Gold.com: As WTI crude oil tests an important area of support/resistance near $49 there are some signs that crude prices could ultimately fall below $40 if certain supply conditions remain present. The global crude oil supply/demand balance is very delicate to say the least. The following table from Morgan Stanley highlights just… Continue Reading
Via Energy and Gold.com: While most market participants have been focused on crude oil, natural gas is poised for a powerful upside move over the coming weeks: A fairly impressive rounding bottom pattern has formed during the last month in front month natural gas futures – a breakout above $3.00 would target a move up… Continue Reading
Via Energy and Gold.com: Thus far, front month WTI Crude Oil futures have been unable to breakout above resistance near $54: A further pullback to the $52 area would still keep the uptrend from the January 29th low intact and it’s quite likely, given that it will be at least the 4th attempt in the… Continue Reading
From Energy and Gold.com: Oil implied volatility as measured by the OVX (CBOE Crude Oil Volatility Index – at top of chart below) is breaking out to the highest levels seen since the 2008 Global Financial Crisis: Meanwhile, realized volaility (as measured by the average true range) is also spiking higher but not quite catching up… Continue Reading
Via Energy and Gold.com: During the week ending January 20th hedge funds increased short positions in WTI crude oil futures to the highest levels since September 2010: There is an interesting dynamic developing in the crude market: Inventory builds are expected to be huge during the 1st quarter Sentiment has reached a bearish extreme that… Continue Reading
Via Energy and Gold.com: There was a boom in oil & gas Capex during the past couple of years, particularly in the shale oil drilling space: With the recent crash in the oil price this boom has turned into a bust and there is likely to be further fallout among the weaker, less well capitalized… Continue Reading
Via Energy and Gold.com: Small speculators more than doubled their net length in gold futures ahead of the ECB’s quantitative easing announcement on Thursday: This is the largest net long position in gold futures that small speculators have had since early July which happened to coincide with an intermediate price peak for the yellow metal. Meanwhile,… Continue Reading
Via Energy and Gold.com: We have been ‘stalking’ Haliburton (HAL) for a couple of weeks based upon a clearly defined double-bottom setup and the potential for a breakout above $41. This breakout is now in progress: The Daily 14-period relative strength index (RSI) is above the median line pointing higher and no where close to… Continue Reading
Via Energy and Gold.com: A set of quotes on oil from some people in high places from Bloomberg Briefs: There are some observations and deductions to be made from this set of quotes. Possibly the person to gain the most from higher oil prices, the CEO of Russia’s VTB Bank, says that $60-$80 is the range… Continue Reading
Via Energy and Gold.com: Tomorrow morning (North American time) the ECB will make its much awaited announcement which is almost sure to include some form of quantitative easing program. A series of leaks this morning, the most market moving of which was reported by Bloomberg, disagrees on the size and duration of the program to… Continue Reading
Via Energy and Gold.com: From Bloomberg Briefs: Iraqi oil production has absolutely exploded during the last 6 months to now more than 4 million barrels of oil per day. This is occurring even as ISIS continues to conduct its insurgency throughout much of the country. Moreover, Iraq plans to continue to boost exports of its… Continue Reading
