Tag Archives: energy

3 Reasons Putin’s Nat Gas Deal Is A Big Deal

It’s not just because it took 10 years to negotiate with China or is worth $400 billion, but the new deal Gazprom signed to supply 38 billion cubic meters (bcm), which is about the amount NY state uses annually, of natural gas to China each year for the next 30 years may be a major game changer Read more […]

A NICKEL For Your Thoughts?

Industrial Metals are historically the most economically sensitive sector besides energy. While Chinese oil demand growth is set at 3.6% in 2014 and HSBC’s Chinese Manufacturing Purchasing Managers’ Index (PMI) edged down to 50.8 in November, barely above the key 50-threshold delineating expansion from contraction, according to IEA’s OMR Report, nickel is the only commodity in petroleum and industrial Read more […]

Not ALL Weights are EQUAL: Why Brent isn’t Heavier than WTI

2014 is just around the corner now and the new weights for both the DJ-UBS CI and S&P GSCI have been announced. While the index weightings follow the methodologies, there are questions around the weights of two particular commodities, Brent crude oil and WTI crude oil. The interest comes from the fact that they are Read more […]

Lower Gas Bill? Why Not?

As mentioned in my last post, logistics and technology are the two key factors in propelling commodities from local markets to global markets. The U.S. is now expected to be the biggest producer of natural gas in 2013, so what does that mean for the residents? Will gas bills be cheaper? Will there be a Read more […]

Exchange Keys to Unlocking the Growth of Regional Commodities into Global Benchmarks

What drives the success of some index commodities like Brent Crude Oil or Milling Wheat to become global benchmarks? Can the energy revolution in the U.S. change the way the world views benchmarks such as WTI Crude Oil or Natural Gas? To find out the answers, we recently had the special opportunity to interview Gary Morsches, Read more […]

Commodity Beta: Hogs-Wild? Hardly. Energy Fills the Thrill!

If you believe the S&P 500, which is market cap weighted, is considered the U.S. stock market beta, then the S&P GSCI, which is world-production weighted (analogous to market cap weighted), is the logical choice for commodity beta.  Typically, using an index, namely the S&P 500, as the benchmark for beta is standard practice in Read more […]