John Kilduff is the Founding Partner of Again Capital. Prior to starting his company, he was Vice President and co-head of MF Global and Senior VP of Energy Risk Management Group at Fimat USA, where he was responsible for providing corporate energy risk management services.
He also has held senior positions at ABN AMRO, Metallgesellschaft Corp. and Lehman Brothers.
Kilduff appeared before the United States Senate Committee on Energy and Natural Resources to give an assessment of the energy markets.
He has a Bachelor of Science degree from Saint Bonaventure University and a Juris Doctor from Fordham University School of Law. He has a bar membership in New York and has professional registrations in commodities and securities.
Follow John Kilduff on Twitter @KilduffReport.
Energy watchers need pay close attention to the outcome of the Saturday meeting in Geneva, among Iran, European Union representatives, and most interestingly, the United States. Secretary of State Condoleezza Rice has confirmed that this meeting represents a change in U.S. policy toward Iran.
As I have been saying, much of the recent sizzle in the race toward almost daily record price levels is attributable to the tensions over Iran, and the recent tangible statements and actions by Israel, Iran, and the US, in terms of military exercises.
The commodity sector appears to have taken a roman candle shot to the head over the Fourth of July Holiday weekend. The spikes in crude oil, gasoline, heating oil, corn, copper, cocoa, too name several, have been largely erased.
Oil is on the boil, again, this morning over renewed speculation concerning Israel’s intentions on Iran’s nuclear capabilities. Once again, we awake to a raft of comments from various officials in the protagonist countries about a possible military strike on Iran.
I am closely watching where crude oil prices settle for the week. We had been trading in a range between $132 and $138 per barrel, since June 6th. From a consumer’s perspective, I had been hopeful that the failure to assault the $140 level would allow for prices falter, at least for a while.
Just after the start of trading, today, it was announced that virtually all categories of transportation fuels would rise 1,000 to 1,500 Yuan per tonne. International measures of fuels are often represented in metric tonnes, as opposed to our more familiar gallons.
The International Energy Agency released its monthly oil report this morning. News headlines trumpeted the agency’s forecast of reduced demand for the fifth consecutive month. However, the market has jumped all over a forecasted decline in Non-OPEC oil production of 300,000 barrels per day.
A confluence of events drove oil prices to an all-time high of $135 last week. At the time, I identified this move as a potential market top. Since then, there has been another confluence of events that seems to have spurred a run for the exits by traders.