CNBC's Jackie DeAngelis discusses the day's activity in the commodities markets.» Read More
Last week spot NYMEX crude oil traded through the $90 a barrel threshold. It was the first time since the implosion of the 2008 bubble that prompt barrels traded above this key psychological level. Be that as it may, the contract finished the week at a disappointing $87.79, down 1.6% Friday-to-Friday. Moreover, the contract failed above the neckline (≈$89.50) of an inverse head-and-shoulders pattern, writes Stephen Schork.
Bottom line, outside of the Corn Belt, ethanol is losing political favor on both the Left and Right, Democrats and Republicans.
To say the least, it was an inauspicious two-thirds of a quarter that usually produces the highest prints of the season.
Spot Nymex crude oil traded above the $90-barrier for the first time since the implosion of the 2008 bubble. Crude oil for January delivery hit an intra-day high of 90.76. It was the highest price paid for prompt delivery since October 2008.
Now that Al Gore has admitted his “mistake,” the U.S. ethanol industry finds itself at the center of what is setting up to be one ugly political spectacle.
Here we go again … oil bulls returned with a vengeance on the first of the month last week as desperate fund managers scrambled in a last ditch effort to salvage what has been a rather dismal year for most of them thus far, writes Stephen Schork.
As first reported by our friend Joshua Schneyer at Reuters, far greater volumes of crude oil than previously reported are flowing from the U.S. Midwest (PADD II) into the epicenter of the U.S. refinery market in the Gulf Coast (PADD III). This is troubling.
Yesterday (Wednesday), spot Nymex gasoline for January delivery surged by 11.4 cents a gallon (+5.2%) on an apparent physical squeeze in the Northeast. The contract was lower past midnight EST, but as soon as it went positive (around 4am ET) the rally was on.
With the implicit volatility in futures contracts, market participants turn to options contracts as a way to hedge risk.
On Wednesday of last week, the Bureau of Economic Analysis released its latest personal income and expenditure figures. The former came in at 0.5% for October, above analyst expectations of a 0.4% increase, while expenditure, or spending, came in at 0.4%, slightly below analyst expectations of a 0.5% increase, but much better than the 0.2% increase seen in September.
In last Wednesday’s edition of The Schork Report, we expressed our disagreement with the 2.00 MMbbl draw in crude inventories expected by analysts from the DOE report.
As U.S. energy markets approach the Thanksgiving holiday this Thursday, liquidity will begin to evaporate. In the meantime crude oil bulls in New York appear to be caught in a virtual purgatory between congestion from October around 82.87 to 83.44 and support out of September from 78.90 to 77.81.
Legendary oil and natural gas executive T. Boone Pickens outlines his energy plan, which includes an expansion of renewables in power generation, and advancing the use of domestic fuels — most logically natural gas — for transportation , which accounts for two-thirds of our oil use.
The last time we discussed the domestic producer price index (PPI) and consumer price index (CPI) we stated that “Consumers aren’t feeling the pain… yet.” The CPI for September was flat, whereas analysts were looking for a 0.1% increase and we were specifically concerned that the CPI of food rose just 0.32%, stating “we do not expect this to last.”
What is most peculiar given that California is one of the largest crude oil producers in the Lower 48 (second only to Texas) is that employment in the Mining/Logging sector (which includes oil and gas extraction) is down 1½%. Conversely, this sector in Texas is up by 51%!
Whereas it took the bulls 15 sessions to rally the market for December oil 10.2%, it took only a quarter of that time for them to give it all back. As such, bulls now find themselves having to defend $80 when just a week ago $90 looked like a slam-dunk.
Since the U.S. Fed announced its plan to purchase $600 billion of Treasury Bonds (QE2) two weeks ago, the U.S. dollar has rallied 5.3% against the euro. In turn, after a slight decoupling, Nymex crude oil has plunged 7.4% (peak-to-trough) over the last four sessions.
Move over, Mr. Obama. Donald Trump is “mulling over” whether to run for president.
Touting his energy plan to get America off foreign oil, financier T. Boone Pickens told CNBC Wednesday that the U.S. is importing oil from its "enemies."
Despite reports, U.S. gas producers have not given up on drilling. Thus, whether we are talking about anecdotes from the Fed or earnings statements from one of the largest gas producers in U.S., the bottom line is clear...