Ok, ok, I’ll put the Star Wars theme to bed. For today, my friends, we are going to look at some facts and figures about storage across a number of our dearly beloved commodities and a number of geographies – highlighting (for the most part) a theme of staunch stockpiles.
To further provide some educational information, in addition to the focus on energy, there is also some trivia relating to the ultimate sultan of storage…the squirrel. So enjoy!
And we’ve had another week of ridiculous rallies and savagery sell-offs, leaving crude markets…ooh, not all that changed, actually. The European debt crisis has been eased by France/Belgium guaranteeing the bad debt of Dexia, while the ECB has promised further bond purchases to calm default fears. A better-than-expected US employment report has been gladly accepted by markets (note: do not confuse ‘better-than-expected’ with ’strong’), while global economic worries continue to bubble away under the surface. Natural gas has spent the week plundering to new low after new low, as warmer outlooks look set to quell some heating demand, while strong supply is omnipresent. But enough from me, hark, bites to see: » read more
The impact from events in MENA (Middle East / North Africa) in the past couple of months has been uncompromisingly bullish for the energy complex, and specifically crude oil. However, with the coming of a second ‘black swan’ event in quick succession to this first outlier through the earthquake in Japan, markets this time have been dealt a very different hand, in that the impact to the energy complex is not quite as clear cut. » read more
Earlier in the year, I wrote a post about the sideways movement in US natural gas and crude oil prices, called ‘Keep Calm And Carry On’. Well, now seems an opportune time to flip the coin, as we are seeing UK natural gas prices panic and freak out.
Altrightee, we’ve got two more full weeks left of 2010; hopefully they’ll be a little more eventful than this one. Crude broke $90 early doors, then fell back and treaded water ahead of a wave of information this weekend. Meanwhile, natural gas rallied through to Thursday, only to give back all its gains on a bullish storage print (go figure). This weekend sees Opec’s end-of-year party meeting in Ecuador, meanwhile China is widely expected to raise interest rates. Next week sees a return to form for economic data, while colder-than-normal temperatures for the eastern US are lending support to natty. This means next week should be more of a snowstorm of activity = much more fun. Until then, keep your eyes on the prize (like my friend here), and your plate close at hand; bites are served: » read more
Matt Smith spent his twenties working in investment management in London, before swapping his bowler hat for a banjo and moving to Louisville, KY, and Summit Energy. When he is not reading, writing (or dreaming) about financial markets, he can be found enthusing about music, red wine, spicy food, or his family. And lamenting his soccer team, West Ham.
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