Not the typical stuff Granthem opines on, but a very surprising article touching on commodities.
Comments »Black Gold Spikes on Israeli Airstrikes in Gaza
Black Gold Gains on Stimulus Expectations in Japan
“Crude rose for the first time in three days, buoyed by speculation that Japan may pursue more aggressive monetary easing, potentially buoying fuel demand.
Futures gained as much as 0.7 percent as the Standard & Poor’s GSCI Index of commodities advanced for the first time in three days. Japan’s Prime Minister Yoshihiko Noda said he is willing to dissolve parliament on Nov. 16, pushing the yen lower as investors speculated that the central bank would add stimulus to revive the economy. U.S. inventories probably climbed last week to the highest in more than three months, according to a Bloomberg survey before a government report tomorrow. U.S. equity futures rose.”
Comments »Cramer: IEA Energy Prediction Way Off
In a moment when nothing makes us happy, we got a nice feel-good story Monday, that the IEA, the International Energy agency, says we will be energy self-sufficient in 2020 and overtake the Saudis as the biggest exporter of oil in 2030.
To which I say, oh, please, we will never ever again be nationally self-sufficient, but we could be continental self-sufficient, and that in itself would be a big deal.
But we can only do it in two ways: 1.) Choosing to view the Canadian tar sands oil as regular oil that can be refined cleanly, as Honeywell (HON -0.33%), which makes the refining chemicals, says it can be, and 2.) we switch to natural gas surface fuel.
I don’t have great hopes for either under President Obama, and that means you are going to have to start the sufficiency drive in 2017, which doesn’t give you a whole heck of a lot of time.
First, the anti-fossil-fuel nonprofits were important to Obama’s election. They have no desire to allow Canadian heavy oil to come into the States. I think they are powerful enough to stop it, and that means we will continue to import oil from Venezuela and the Middle East. OPEC wins.
Second, although I had a very optimistic David Demurs from Westport Innovations (WPRT +3.88%) on the show tonight, the premier nat-gas engine maker, it is very clear that the demand for nat gas engines isn’t up to snuff — hence the missed quarter — in part because the infrastructure is just not there to pump. Until it is, nat-gas engines remain ultra-niche.
Read here:
Comments »The Market Oracle: Gold Prepares for Breakout as Stock Market Trends Towards a Crash
“We exited our short positions in gold for a modest but useful profit when it broke out of its downtrend towards the end of October. It then broke sharply lower on heavy turnover in a move that looks capitulative, but afterwards turned and rose quite sharply over the past week. So the question now is “has it bottomed?” Although the answer to this question is “Yes, it looks like it has”, it also looks like it may back and fill for a little while to complete a base pattern before a sustained advance can get underway. COTs, particularly for silver, continue to give grounds for caution and warn that the current turn may be the B-wave trap of a A-B-C correction. We are aware of this danger and place stops accordingly to protect us from it.”
Comments »Whistleblower Claims The Energy Market Is Rigged
REALLY ?
“Power companies are “regularly” manipulating Britain’s wholesale gas prices, a whistleblower has claimed.
Last night City watchdog the Financial Services Authority (FSA) and energy regulator Ofgem both said they had launched investigations into the claims.
The FSA launched its investigation after whistleblower Seth Freedman told them he saw evidence that wholesale gas prices, used as the basis for domestic energy bills, were manipulated by some of the big power companies according to a report by the Guardian newspaper .
Mr Freedman, who worked at ICIS Heren, a firm which reports gas prices, said he saw what he took to be suspect trading on September 28, which is an important date as it marks the end of the gas industry’s financial year and can influence future prices.”
Comments »Black Gold Falls on Expectations of a Build in Inventories
“Oil declined for a second day in New York amid speculation that U.S. crude inventories rose last week and after the International Energy Agency cut its forecast for global demand growth this quarter.
Futures slipped as much as 1.2 percent. U.S. crude stockpiles probably increased last week to the highest level in more than three months, according to a Bloomberg survey before an Energy Department report on Nov. 15. OPEC will need to pump less crude this quarter as demand growth slows, the IEA said. Oil slid yesterday as investors awaited budget talks in the U.S., and extended losses after European leaders said they’ll meet again Nov. 20 to discuss additional funding for Greece.
“Primarily bearish winds are blowing in oil markets at the moment,” said Filip Petersson, a commodities strategist at SEB AB in Stockholm who predicts Brent crude will average $110 a barrel this quarter. “On the macro side, bearish influences are coming from a new wave of Greek worries and the approaching U.S. fiscal cliff.”
Comments »U.S. to Outproduce Saudi Arabia and Russia by 2017
“(Reuters) – The United States will overtake Saudi Arabia and Russia as the world’s top oil producer by 2017, the West’s energy agency said on Monday, predicting Washington will come very close to achieving a previously unthinkable energy self-sufficiency.
The forecasts by the International Energy Agency (IEA), which advises large industrialized nations on energy policy, were in sharp contrast to previous IEA reports, which saw Saudi Arabia remaining the top producer until 2035.
“Energy developments in the United States are profound and their effect will be felt well beyond North America – and the energy sector,” the IEA said in its annual long-term report, giving one of the most optimistic forecasts for U.S. energy production growth to date.”
Comments »Industrial Metals and the Aussie Dollar Rise on China Export Growth
“Industrial metals advanced with the Australian and New Zealand currencies as China’s exports topped forecasts. European stocks swung between gains and losses before the region’s finance chiefs meet to discuss Greek aid.
Copper jumped 1 percent at 7:20 a.m. in New York. The yuan climbed to a 19-year high and the so-called Aussie gained against its 16 major peers. The Stoxx Europe 600 Index increased 0.1 percent, with trading volume 12 percent below the 30-day average. Standard & Poor’s 500 Index futures added 0.3 percent, indicating the benchmark gauge will rebound from its worst week in five months. Spain’s 10-year note yield rose four basis points. U.S. bond markets were closed for a holiday.”
Comments »Black Gold Flip Flops Overnight
Currently Brent and WTI are in the red as European markets accelerate losses.
Comments »Gold Outperforms Stocks for a Third Year in a Row
“Year-to-Date, the S&P 500 has just dropped back below Gold…Gold’s performance year-to-date just surpassed that of the S&P 500 once again. If this remains the case into year-end, this will be the third year in a row that Gold has outperformed stocks. Looking forward, which ‘asset’ would you choose – Stocks with an implied volatility of 17% or Gold at 15.75% to the end of the year? Sharpe Ratio anyone? Perhaps asking your ‘asset allocator’ what his weighting is based on will be a worthwhile conversation – with the outperforming returns (past is not a predictor of the future – and noone knows) but lower forward risk expectations?
YTD performance across asset classes…”
Comments »OPEC Sees Continued Increase in Consumption and Prices, Shift Within Fossil Fuels
“In its latest World Oil Outlook released today, the Organization of Petroleum Exporting Countries (OPEC) is forecasting that demand for energy will rise 54% by 2035. Fossil fuels, including oil, natural gas and coal, which now account for 87% of demand, will continue to supply 82% of the world’s energy in 2035.
The cartel does see, however, a shift within fossil fuels:
For most of the projection period, oil will remain the energy type with the largest share. However, towards the end of the projection period, coal use in the Reference Case reaches similar levels as that of oil, with oil’s share having fallen from 35% in 2010 to 27% by 2035. Natural gas use will rise at faster rates than either coal or oil, both in percentage terms and quantities, with its share rising from 23% to 26%.
In other words, demand for fossil fuels will be split almost evenly among the three fuels by 2035, and the biggest loser is oil.”
Comments »Black Gold Bounces After Largest Sell Off of the Year Seen Excessive
“Oil rebounded from the lowest level in almost four months in New York on speculation that the biggest decline this year was exaggerated.
West Texas Intermediate climbed as much as 1.4 percent, after its 14-day relative strength index plunged to 38.5 yesterday, a sign that prices may be oversold. Crude slumped 4.8 percent yesterday after U.S. stockpiles gained and fuel demand dropped, while President Barack Obama’s re-election stoked concern that the struggle to resolve deficit-reduction talks may harm the economy.
“Oil prices have experienced quite a rollercoaster ride in the past days, and today’s move looks like technical trading as traders re-balance their positions after the election,” said Michael Poulsen, an analyst at Global Risk Management in Middelfart, Denmark. “There’s a slight bias to the upside today that might mean room for a move up of $1 or so.”
Oil for December delivery rose as much as $1.16 to $85.60 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $85.51 at 12:45 p.m. London time. It lost $4.27 yesterday to $84.44, the lowest close since July 10. Prices are down 13 percent this year.
Brent for December settlement on the London-based ICE Futures Europe exchange gained as much as $1.11, or 1 percent, to $107.93 a barrel. It slid $4.25, or 3.8 percent to $106.82 yesterday. The benchmark grade for more than half the world’s oil was at a premium of $22.25 to New York crude. The spread widened to a one-week high of $22.38 yesterday.”
Comments »Oil Gets the Homo Hammer
Goldcorp’s Jeannes: Gold Will Soar to $2,000 Next Year
“Gold has risen 9 percent so far this year, and the party’s only getting started, says Charles Jeannes, CEO of Goldcorp Inc., the world’s second-largest producer of the metal.
He sees gold reaching $2,000 an ounce within six to 12 months. That represents a gain of 16 percent from the spot price of $1,726 early Wednesday.
“The fundamentals of our product in terms of supply and demand are very positive,” Jeannes tells CNBC. “There will be short-term volatility, but we’re very bullish on the longer-term price.”
Comments »Anyone Paying Attention to Gold ?
Black Gold Falls on Greek Austerity Vote, Stockpiles Rising
Oil fell from a two-week high in New York amid speculation that U.S. crude inventories rose last week and as Greece prepared to vote on austerity measures.
“Futures slid as much as 1.2 percent after surging 3.6 percent yesterday. Greek parliamentarians will vote later today on proposed spending cuts amid concern that Europe’s debt crisis may curb demand for fuels. U.S. oil stockpiles probably increased last week for a fourth time in five weeks, an Energy Department report may show today.
“Oil’s drop is reflecting some caution ahead of the Greek vote tonight,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt. “There is concern that the austerity package will not pass the parliament and Greece will default as a result.”
Comments »#SANDY GONE WILD: GAS FOR SEX
Sandy Gas Woes Continue: People Trading Gas For Sex On Craigslist
via CBS NEWS LOCAL
Comments »NEW YORK (CBSNewYork) – How far would go to get gas?
Long gas station lines and empty gas pumps have plagued drivers across New York and New Jersey since Superstorm Sandy slammed into the East Coast last Monday, leaving a gas shortage across the region.
Stories of price gouging and fights at gas stations have also been commonplace. But now it seems people — men in particular — are finding new ways to take advantage of gas-seeking Tri-State residents: Sex.
Sinopec Plans a Carbon Capture Plant in Wyoming
In a move by China to satisfy its voracious energy appetite Sinopec has applied to build a coal to gasoline carbon capture plant in a tiny town in Wyoming…
Comments »Black Gold Gains on Consumption and Supply Constraints After Hurricane Sandy
“Crude rose for a second day in New York amid forecasts that U.S. gasoline supplies dropped after Hurricane Sandy forced the shutdown of East Coast refineries.
West Texas Intermediate crude advanced as much as 0.9 percent. Gasoline supplies fell 1.5 million barrels, or 0.8 percent, to 198 million in the seven days ended Nov. 2, according to the median of nine analyst estimates before an Energy Department report tomorrow. The fuel advanced as much as 1.2 percent to $2.6524 a gallon. U.S. voters decide today whether to return Barack Obama as president or elect his challenger Mitt Romney.
“The devastation and fuel shortages brought on by Hurricane Sandy are still being felt across the product complex in the U.S.,” said Andrey Kryuchenkov, a London-based analyst at VTB Capital who correctly predicted last month that Brent would slide.
WTI for December delivery climbed as much as 75 cents to $86.40 a barrel in electronic trading on the New York Mercantile Exchange, and traded at $86.29 at 12:11 p.m. London time. The contract traded at $84.34 yesterday, the lowest intraday level since July 12. Prices have dropped 13 percent this year.
Brent for December settlement was 88 cents higher at $108.61 a barrel on the ICE Futures Europe exchange. The European benchmark crude was at a premium of $22.30 to New York-traded WTI.”
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