CNBC's Jackie DeAngelis discusses the day's activity in the commodities markets and looks ahead at where oil and precious metals are likely headed next week.» Read More
Yesterday the second-month out July contract eked out a 2.2 cent gain. That is rather pitiful given that residual fuel oil, per the NYMEX 1% NYH swap, was marked 20 cents higher. Despite yesterday’s higher close, July Henry Hub futures have closed lower in 7 out of the last 11 sessions. More importantly, yesterday the contract posted a lower higher and lower low for an eighth straight session, writes Stephen Schork.
OPEC is unlikely to cut output at its upcoming meeting, Saudi Arabia's oil minister said in comments published Tuesday, as indications mounted that the oil producing bloc would resist a temptation to tighten the taps despite wanting higher crude prices.
"It's a 'show me' period, but the expectation is that the data is going to disappoint, as it mostly has for the last few weeks," said Binky Chadha, chief U.S. strategist at Deutsche Bank.
Bottom line, nothing changed, i.e. you can’t swing a cat without hitting a molecule of gas in the U.S. In this vein, yesterday’s reaction to the EIA report on the NYMEX is not difficult to reconcile, writes Stephen Schork.
London bulls are shooting 3 for 3 thus far... U.S. refiners are in no apparent rush to get back to business, writes Stephen Schork.
China, the largest contributor to greenhouse gas emissions in the world, has been taking large steps to be greener. However, they now recognize that they may have more pressing issues to address, writes Stephen Schork.
The summer Natural Gas strip is trading at a significant premium to the nearby winter strip. For this point in the season that is odd. We could expect this contango in October....but to see this behavior so early in the year is, to quote everybody’s favorite Vulcan, highly illogical, writes Stephen Schork.
The fact that equities had a rare down week also weighed upon the energy complex. That is to say, even the equity market’s more enthusiastic Pollyannas had a hard time spinning last week’s headlines, writes Stephen Schork.
Another potential sign that crude oil is topping out was my appearance last Friday night on the Kudlow Report, writes Stephen Schork.
U.S. supplies of crude oil and petroleum products rose to the highest level for which the DOE provides weekly data. On top of this, demand fell off of the proverbial cliff, writes Stephen Schork.
Look Who’s Buying Natty Redux: We got a lot of feedback from yesterday’s blog post regarding the interest in the natural gas complex by passive investors and the positive knock-on to the NYMEX Henry Hub price path, writes Stephen Schork.
The Street is drunk on its own Kool Aid: Less bad was good last week… that is, if you’re of the mindset that a half-million people losing their job in April is good, writes Stephen Schork.
Was yesterday the proverbial blow-off top on the NYMEX? Time will tell.....That drive petered out as traders looked back towards equities and realized that they may have jumped the gun. The market plunged in the early afternoon, but momentum stalled exactly on Wednesday’s 55.46 pivot. Thus, if you are bullish WTI, you are still feeling pretty good about your view, writes Stephen Schork.
What started out as a bear market rally in equities back in March, is now in the process of morphing into a full fledged rally. Sidelined money, disgruntled and dismayed that it has missed the bull’s party of the last two months, is now reluctantly piling back into the market, writes Stephen Schork.
writes Stephen Schork.
Market bulls are behaving like a traffic cop after a horrific roadside accident. They are doing their best (and succeeding) at ushering the oncoming traffic along…just keep moving folks, nothing to see here, writes Stephen Schork.
"Spot contract up, deferred contracts up more. For a sixth week in a row, bullish momentum in spot crude oil in London stalled in the low/mid $50s," writes Stephen Schork.
Energy prices were mixed on Wednesday - oil markets moved higher because – you know why –because equities moved higher. Meantime, natty moved lower because – you know why – because unlike oil, the price path in natural gas correlates to its fundamentals… and not the stock market," writes Stephen Schork.
"Less bad is good…so goes the mantra of today’s bull. So goes the rationale for buying global shares…and so goes the motivation for buying oil," writes Stephen Schork.
"Energy prices were weak on Monday … as a potential influenza pandemic hung over the market. As we look ahead to today the market will look to take its marching orders from the equities, May natty’s expiry notwithstanding. In this vein, keep an eye on the U.S. consumer confidence and CaseShiller home indices," writes Stephen Schork.