Brent rose on Friday on uncertainty over Saudi oil output following the death of King Abdullah.» Read More
CNBC's Sharon Epperson discusses the day's activity in the commodities markets and looks ahead to where oil and precious metals are likely headed next week.
WTI lagged behind the rest of the complex last week but made up for it with gusto yesterday. October contract prices surged to their highest point in almost two weeks to settle 2.23% higher at 87.27.
Not to marginalize the loss of life and property in the wake of Hurricane Irene, but, based as a function of media hype, this weekend’s storm along the eastern seaboard was a dud.
Post-Gaddafi Libya could begin pumping oil in the next few months, as rebels secured oil infrastructure around Tripoli and edged closer to taking complete control of the country. However, oil markets are shifting their attention to concerns that the US might undertake further fiscal stimulus.
Concerns about a double dip have always been on the backburner, but rarely have pundits been so vocal with concerns regarding QE3, domestic unemployment, the housing market, and debt concerns out of Spain.
Oil companies are understood to be preparing to move back into the North African country, which used to pump 1.6 million barrels per day before the uprising against Muammar Gaddafi's government began six months ago.
According to various newswire reports, Venezuelan President Hugo Chavez plans to nationalize his country’s gold mining industry and repatriate 211 tons in gold reserves from North American and European banks.
The White House confirmed that President Obama is preparing a “jobs proposal‟ which he intends to introduce to the public as soon as gets back from his vacation on Martha’s Vineyard (he’s waited 31 months, what’s another couple of weeks?).
Gold futures surged to a record close yesterday. Open interest in the contract for December delivery stood at 360,671 contracts as of last night and the market settled at a record $1,785 an ounce.
Will a flattening of the yield curve on U.S. Treasurys give a boost to oil prices? In some respects, it already has.
Welcome Back, Carter. Confidence amongst consumers in the U.S. plunged in August to the lowest level since the dying days of the Carter Administration. The University of Michigan’s preliminary index of consumer sentiment dropped by nearly 9 points, or 14% to 54.9.
We are now halfway through the second phase, i.e., the dog days phase, of the summer natural gas refill-season in the U.S. As noted last month in The Schork Report, this phase of the season produces the lowest injections of the cycle as peak a/c demand siphons off molecules through July and August.
Despite a stronger dollar and weak equities, front month WTI jumped 4.53%, the highest daily gain since May 9th and, with a settle of 82.89, a definitive settle above the 80.00 barrier.
The general market consensus is that recent weakness has not been due to an imbalance in supply, but rather weaker demand forecasts.
Now let’s get this straight… in reaction to the downgrade of the creditworthiness of the U.S. by Standard & Poor’s, global equity markets tanked, gold surged to a record, oil sank and U.S. debt – the assets directly affected by S&P’s downgrade — rallied. Confused? The markets certainly are.
On Friday, the U.S. Bureau of Labor Statistics (BLS) showed a better than expected increase in employment. Nonfarm jobs rose by 117,000 in July and the unemployment rate fell by 10 bps to 9.1%. The BLS also upped the estimates for May and April by 112% (!) to 53,000 and by 156% (!!) to 46,000, respectively.
Which technical indicator did crude oil not break yesterday? We closed the Egypt/Libya contagion gap from February, the Relative Strength Index (RSI) has now crossed into over-sold territory of 18.33 and the Erlanger Trend Direction crossed from a red bar above the center line (a pull-back) to a red bar below the center line (a downtrend).
"We are not worried about Italy, we think this is a panic and unfounded fear," Oliver Baethe, chief financial officer at Allianz told CNBC. He added Allianz's exposure to the peripheral debt was now "fairly limited." "We have about 5 billion euros in exposure to the peripheral countries, the largest one of that left is Spain. On all the other ones its much smaller the net unrealised losses on all of the periphery portfolio is around 700 million," he said.
CNBC's Sharon Epperson discusses the day's activity in the commodities markets and looks at where oil and precious metals are likely headed tomorrow.
Domestic GDP growth for Q2 fell well below expectations. Is the recovery – already slow – grinding to a halt? Or was the drop in dollar terms due simply to a sharp sell-off in energy prices? While we would love to say the latter, the truth lies in parts of both.