Monday , September 16 2019
Home / Tag Archives: oil

Tag Archives: oil

Jump in Yields Didn’t Derail Equity Rally While Sterling Rallies Ahead of the Weekend on (misplaced) Brexit Optimism

The most striking thing about last week's price action was the surge in US yields.  The 10-year yield jumped about 34 basis points, the most in three years and returned to levels not seen since August 2 (1.90%).  A deluge of investment-grade corporate bonds and US Treasuries ($78 bln auctioned to lukewarm reception), coupled with an acceleration of core CPI (highest in 11 years), optimism on the trade front, and Mnuchin's insistence on pushing forward with an extra-long bond, (50, and...

Read More »

Crude Oil Rises as US-China Relations Show Signs of Improvement, Erases Gains Later

Futures for crude oil rallied today as the market sentiment was positive. By now, though, the commodity retreated, erasing its earlier gains. Traders felt more confident and willing to risk after reports that China decided to exempt 16 US goods from tariffs, while the United States will postpone implementation of new tariffs on Chinese goods till October 15. Markets considered the gestures as a sign that both countries want...

Read More »

US Crude Craters 3% As Trump Proposes Easing Sanctions on Iran

US crude oil is cratering as much as 3% midweek after President Donald Trump suggested that the White House could ease sanctions on Iran in order to renew negotiations. Oil futures were trading higher to kick off the session after the federal government reported a bigger-than-expected decline in domestic stockpiles. October West Texas Intermediate (WTI) crude futures fell $1.54, or 2.68%, to $55.83 per barrel at 17:46 GMT...

Read More »

Dollar is Firm as ECB is Awaited

Overview: Global equities are extending their recent gains while bonds remain on the defensive.  The dollar is firm.  There is a degree of optimism that is prevailing. There are some more overtures in terms of US-Chinese trade. In Hong Kong, developers and banks led an equity rally on ideas that the political tensions may ease. South Korea reported better trade data for the first ten days of September. Italy's Conte survived a second vote of confidence yesterday, putting a new...

Read More »

Oil Drops on Tuesday, Bounces After Wednesday’s Session Opens

Futures for crude oil declined during Tuesday’s session, though they bounced a bit after the next session started. Analysts speculated that the decline was a reaction to the news about the resignation of John Bolton from the post of a national security advisor. Bolton is known for his hawkish stance against Iran. It is possible that without him the United States will soften the stance on the Middle...

Read More »

London missing out on Aramco IPO could be a blessing in disguise

Saudi Arabia is getting deadly serious about the stock market flotation of state oil giant Aramco, just not in London. Once tipped as a potential host for what could be the world’s largest initial public offering, Brexit chaos and the prospect of Jeremy Corbyn seizing power have significantly diminished the City’s chances of becoming the international home for Aramco’s shares. Missing out would be a blow to prestige, but it could also be a blessing in disguise. Aramco – which the kingdom’s...

Read More »

Crude Oil Rallies After Saudi Arabia Replaces Energy Minister

Crude oil rallied today after Saudi Arabia replaced Khalid al-Falih with prince Abdulaziz bin Salman on a post of energy minister. The new minister signaled that he is going to continue to pursue the policy of output cuts to support oil prices. Markets welcomed the appointment as Abdulaziz bin Salman is considered to be good at negotiating production cuts and knowledgeable about markets. Going forward, traders will watch...

Read More »

Video: Weekly Commodity Forecast – Gold, Silver, Crude Oil for 9–13 September 2019

In the present video, Phil Carr from The Gold and Silver Club talks about gold, silver, and crude oil for the week of September 9–13, 2019. As usually, he starts the video by discussing moves of the commodities last week and what factors affected them. The video continues then with commodity charts and speculation about possible price moves. Phil warns about being overly bearish on gold, warning against...

Read More »

IMO 2020 and the Forties de-escalator in Dated Brent

The International Maritime Organization’s decision to cap the sulfur level of global marine fuels on January 1, 2020 has been the dominant story in the oil markets for the last two years. Among the many questions raised by the imminent 0.5% cap on sulfur in marine fuels, some crude oil market participants are now asking what the implications could be for the Forties de-escalator, the key sulfur value adjustment mechanism that lies at the heart of the North Sea’s Brent crude complex. To...

Read More »

Correction or Trend Change?

The US dollar closed lower against all the major currencies last week but the Japanese yen.  The Swiss franc's 0.25% gain was the smallest of the majors.  The move against the dollar was led by the Swedish krona, whose 2% gain was aided by a less dovish than expected central bank.  Other currencies, like the dollar bloc, which often trades better as risk appetites improve, also did well.  Sterling was lifted by the perceived likelihood that a no-deal Brexit had been averted. The...

Read More »