Author: johnkilduff

The rebound in oil prices looks to be short-lived, although prices remain well-above the low point of the recent decline. The head of the IEA commented this morning that the price drop indicates that the market is well-supplied. Nothing like jumping the gun and prodding OPEC into action, the mere second that Brent prices drop below $100 per barrel.… Read more

Although not to the same extent, crude oil prices joined precious metals in declining significantly, yesterday, adding to Friday’s losses. The prices levels were remarkable: Brent broke below $100 and WTI hit a low of 86.40 overnight. Prices have rebounded, however, and Brent is back above $100.… Read more

Today, metals are the featured trade. Gold fell more than $100 per ounce, at point overnight, and silver is down 10%. In case you are not familiar with the silver futures contract size, the approximate $2.50 decline produces a loss $12,500 per contract that you are long from Friday.… Read more

Brent crude oil futures are leading the energy complex lower, once again, today, and are signaling further losses ahead. The bearish outlook comes from the flattening of the curve, which is flirting with outright contango – the condition where front-month prices are lower than longer-dated future prices, indicating ample supplies.… Read more

RBOB gasoline prices were the featured trade, yesterday, falling 7 cents a gallon, causing drivers everywhere to rejoice! The weekly inventory report showed a decent increase in gasoline supplies, particularly on the East Coast, where the anxiety of the slew of refinery closures has been most acute.… Read more

Crude oil prices continued their rebound, yesterday. The moderate Chinese inflation data helped, but so did a lightly noticed item out of Argentina where oil company YPF would have to import 15% of its refined product production, after a fire at a major refinery there.… Read more

Crude oil prices were higher in a variable trade, yesterday. The feature of the complex continues to be the narrowing of the Brent-WTI spread. It has narrowed a remarkable $12 since February. The combination of the rebound of North Sea output and the displacement of West African barrels from the US market has caused the move.… Read more

Crude oil prices rallied back off of their lows on Friday, briefly dipping below $92, at one point. The rebound is continuing this morning with prices back above $93.50. The currency influence is back in focus: the yen hit 99 yen to the dollar overnight, building upon impressive losses of the past several days.… Read more

There are still more losses for crude oil, which are being furthered, this morning, by the weak employment report in the US. Only 88k new jobs were created and the participation rate fell to the lowest level since May 1979. The outlook for energy demand will be impaired, as a result.… Read more

It was another mixed day for WTI crude, yesterday; prices were lower, before finishing basically unchanged. Prices are clearly struggling, and $98 is proving difficult resistance once again. The US economic outlook remains positive enough that a run to $100 is likely, but swelling crude oil supplies are pushing back against that view.… Read more