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Tag Archives: oil

Data To Show Surging US Growth, but is that Enough to Lend the Dollar Support?

Overview:  Ahead of what is expected to be reports confirming the surging US economy, the dollar remains on its back foot, unable to sustain even modest upticks.  The euro has drawn closer to $1.20, and the dollar is holding below JPY109 for the first session since March 24.  The dollar-bloc currencies lead today's move against the greenback, but nearly all the emerging market currencies are participating too.  The JP Morgan Emerging Market Currency Index is rising for the third consecutive...

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Consumer Price(s) Incalcitrant

While we consider the PPI’s view of inflationary pressures as overstated by simple arithmetic and the math of commodities, there’s no denying that producer prices have risen by a substantial amount. The question, the whole issue, is why. If it is truly because price pressures are building and have grown close to breaking out in systemic fashion, then that would indicate the sustainable trend more consistent with the term inflation.In order to reach that threshold, producer prices must...

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Commodities Week in Review: March 29 to April 2

Commodities Week in Review: March 29 to April 2 Agriculture  The biggest story this week in the agricultural commodities market was the US Department of Agriculture’s (USDA) 2021 Prospective Plantings report that sent prices soaring. The USDA stated the domestic farmers will plant lower soybean and corn acreage than what market analysts had initially anticipated. This triggered a massive rally on Wednesday, hitting a daily...

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Holiday Note: US Jobs Day

Overview:  Most financial centers are closed for the holiday today.  Those markets that were open in the Asia Pacific region, like Japan, China, and South Korea, advanced.  US equity futures are also higher after the S&P 500 reached a new record, and the NASDAQ gapped higher.  The cash market is closed today, but the bond market will have a shortened session.  On the week, the 10-year benchmark yields in the US and Europe are a little softer but jumped 15 bp and 13 bp in Australia and...

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Crude Holds onto 3% Rally As OPEC to Raise Oil Production in May

Crude oil futures maintained their gains on Thursday, despite the Organization of the Petroleum Exporting Countries (OPEC) announcing that it would gradually raise production in May. But while most industry observers expected the cartel to maintain an output freeze, prices continued rallying with expectations that the sector would remain tight. May West Texas Intermediate (WTI) crude futures surged $1.77, or 2.99%, to $60.93 per barrel...

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US Crude Tops $61 on Surprise Oil Supply Build, Investors Brace for OPEC Meeting

Crude oil futures climbed above $61 in the middle of the trading week as the energy commodity found support on a bullish US government supply report. US crude prices have been struggling this month, poised to record a minuscule monthly loss. With crude contracts experiencing a correction in recent weeks, can April act as a catalyst for a renewed rally? May West Texas Intermediate (WTI) crude futures surged $0.56,...

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Commodities Week in Review: March 22 to March 26

Agriculture  Most of the hard and soft agricultural commodities took a noticeable hit this week as the industry joined the broader market decline. As investors rebalance their portfolios and transition to various sectors, agricultural investments suffered a slump. Moreover, Treasury yields rose, the US dollar strengthened, and various supply and demand factors weighed on several crops. Cocoa  Friday Settlement:...

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Markets Stabilize Ahead of the Weekend and the Dollar Pares Gains

Overview:  Market sentiment appears to be stabilizing ahead of the weekend.  The MSCI Asia Pacific Index halted a five-day slide, with all the large bourses, but Australia advancing more than 1%.  Europe's sawtooth pattern of alternating gains and losses remains intact for the eighth session. Yesterday was a down day, so today is higher.  US equities are also trading with a firmer bias.  Yields are firm as this week's decline is pared.  The US 10-year yield is near 1.66%, leaving it off...

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US Dollar Firms Against the Euro and Yen, While the Dollar Bloc Finds Support

Overview:  The euro and yen remain under pressure, but the dollar-bloc currencies are finding a little better footing today as equities and bonds look for fresh direction.   Oil has not sustained yesterday's surge and has come back offered, as it sheds a dollar a barrel.  The prospects, although not imminent, of delisting Chinese companies weighed on local stocks, including Hong Kong.  Indian shares also traded heavily, but other advances in the other large markets helped the MSCI Asia...

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OK NYMEX, Beginning To Notice The Fine Print?

Is it a building case of/for selling the news? Another substantial down day in the oil market brings the total slide to just more than 13% (since March 5). Hardly anything earth-shaking on its own, not with the WTI front month futures contract gaining an impressive 85% since the end of October. During those four and a half months, the news was all good (or so it seemed) beginning in the world of pharma (vaccines) and spreading to politics (elections and what that was going to mean for...

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