Oil, Metals, Soft Commodities
Commodities finish the week on a high as indices falter
The market closed the week down overall as volatility continues due to the Russia and Ukraine conflict. The Dow Jones dipped 0.5%, the S&P500 fell 0.8%, and the NASDAQ performed the worst, declining 1.7%, despite generally positive sentiment from the USA concerning the employment figures released on Friday. Employers added 678,000 jobs to the w...
Energy crunch sees coal, oil and gas soar.
Coal and Gas prices have surged and joined gold and oil as demand surges due to the supply shortages stemming from the Russia and Ukraine conflict. The global indices were up overall as the market still remains unsure of how to react to the unfolding crisis. In Europe, the FTSE provided strength with a 1.36% gain and the DAX provided a small bou...
Surging commodities and high volatility the theme as the Ukraine conflict continues
US and European equity markets remained volatile as fighting between Russian and Ukraine forces continued and negotiation talks failed to result in any progress. Both parties however have committed to another round of discussions. The VIX, Wall Street’s volatility measure surged 12% to 30 indicating the increased fear investors are feeling fro...
Russia and Ukraine’s Crisis: Brent and Crude Oil Price action
In the midst of the Russian, Ukraine crisis, there are huge ramifications that affect us all in the global market. Energy is a critically important export. Russian oil and gas exports make up a fifth of Russia's economy and half of its earnings from exports. The country is the European Union's biggest oil trading partner, according to the lates...
GOLD and how it moves in times of crisis
For years, gold has been considered a store of value. As a physical commodity, it cannot be printed like money, and its value is not impacted by interest rate decisions made by a government. Because gold has historically maintained its value over time, it serves as a form of insurance against adverse economic events. When an adverse event occur...
Crude Oil – Saudi Production Cuts Spark Rally
USOIL- Hourly USOIL- It's been an impressive start to the year for Crude Oil prices so far, with prices steadily rising to over $50 per barrel and returning to pre-pandemic levels. It would seem many underestimated such a speedy recovery. Still, with the general uptick in global commodity prices and a pledge from Saudi Arabia to cut production ...
OPEC and allies reach a compromise
The oil industry has remained pressurized by a supply glut and the ongoing uncertainty on the demand outlook with respect to the structural changes in the energy market and the pandemic. The recent vaccine updates and hopes that the pandemic may soon be under control, is providing support to a fundamentally battered energy market. As the year com...
Crude Oil Market
An oil price war and the pandemic struck the crude oil market at a time where the industry was already faced with a simultaneous demand and supply shock. Put simply, crude oil prices were already under pressure due to a flood of supply at a moment of diminishing demand. A Supply Glut which is mainly driven by US shale producers and a Weak Oil D...
The US Dollar and Gold
Investors generally piled-up in the Gold and the US dollar as those assets are viewed as safe-haven during times of crisis or uncertainties- be it economical, political or policy uncertainties. 2020 has been a year of extreme uncertainty and volatility which saw the world battling an unprecedented and paralleled health and economic crisis in mod...
OPEC and G20 Meetings Not Guaranteed
On 8 March 2020, Saudi Arabia initiated an oil price war with Russia, triggering a rout in the oil market at a time where the world is facing a pandemic and many countries forced to shut down their activities and borders. Crude oil prices have lost nearly half of their prices, battled by a simultaneous demand and supply shock. Last Thursday, P...
First Quarter: Crisis, Volatility, and Opportunities
The first quarter of 2020 was marred by unpredicted events that rattled the financial markets: Tensions between US and Iran; The extreme weather conditions across the globe as a result of climate change; The novel coronavirus; and An oil price war between Saudi Arabia, the oil kingdom, and Russia. A Trio of Crises Faced by an ...
The Perfect Storm Brewing in the Oil Market
The Perfect Storm Brewing in the Oil Market The oil and gas industry has been undergoing significant challenges due to the structural shift within the industry. A pandemic-induced economic downturn and an oil price war have now added another layer of uncertainty to the oil markets. Tensions between Saudi Arabia and Russia have disrupted the sta...
Gold Is Being Liquidated
Liquidity Crisis High levels of liquidity happen when there is both supply and demand for an asset, meaning transactions can take place easily. A market is considered to be liquid if it can absorb liquidity trades with significant changes in price. A liquidity crisis is, therefore, an acute shortage or drying up of liquidity. In simple terms, i...
US Dollar and Gold in Tandem
Which safe-haven to choose in 2020 – Gold or the Mighty Dollar? In times of uncertainties – be it economical, political or policy-related, investors generally seek safety with haven assets like the US dollar, Japanese Yen, Swiss franc or Gold. Our attention today is on Gold and the US dollar, both of which have had an interesting start to...
2020 Kicks off with US-Iran and Climate Change Crisis
The start of the year was marred by the escalating tensions between the US and Iran while extreme weather conditions across the global triggered fierce debates about climate change. What do we know so far about the tensions between Iran and the US? Iranian-backed militia killed an American Defense Contractor The US retaliated with missi...
