Wealth Creation Through Natural Resources
After a record run of 16 consecutive weekly U.S. crude oil inventory builds the tide has turned and we are currently experiencing a streak of 4 consecutive weekly drawdowns: Via Sober Look Given that we aren’t even at peak demand … Continued
After months and months of inventory builds to extreme record levels crude oil has finally begun to see some draws including a surprise 2.2 million barrel draw last week: There are likely to be additional inventory draws over the … Continued
After being absolutely crushed during the 2nd half of 2014, thus far energy stocks are one of the best performing sectors in 2015. However, that may be about to change as a number of technical factors indicate that the 2015 energy … Continued
This is an interesting graphic courtesy of RBC illustrating a large drop-off in managed money (CTAs, commodity pool operators, etc.) positioning in commodity futures: After reaching extremely high net long exposure earlier last year before the crude oil crash, managed … Continued
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 … Continued
Back in January and February when the crowd was extremely bearish on crude oil we witnessed a striking bullish divergence in the strength of energy stocks. This relative strength from energy stocks proved to foreshadow the bottom that crude oil … Continued
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 … Continued
Weekend Commodity Chart Wrap 4/18/2015… Gold with realized volatility (top) and implied volatility (bottom) Both realized and implied gold volatility have been in decline since the beginning of the year. The GVZ (CBOE Gold Volatility Index) is currently pricing … Continued
Despite crude oil’s recent rally global demand is still expected to downtick for the next few weeks before surging in May in anticipation of the summer driving season: Crude oil traders are clearly looking past the current bearish market dynamic (record … Continued
In the last 6 months WTI crude oil has fallen 5% or more on a single day on 4 different occasions and on each of these occasions it has risen the following day (including gains of 5.03% on December 1st, … Continued