Tag Archives: natural gas

Jul 1, 2020

June Heatwave for Metal and Petroleum Commodities

The S&P GSCI rose 5.09% in June and 10.47% for the second quarter of 2020. The recovery in the second quarter did not fully retrace the dramatic downside from the first quarter, as can be seen in the index’s -36.50% YTD return. Continued recovery in petroleum commodities contributed, but bullish sentiment in industrial metals such…

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Jun 1, 2020

Commodities Were Energetic in May

Bullish sentiment propelled the S&P GSCI higher by 16.4% in May, its best monthly performance in 11 years. The broad commodity index’s more than 50% exposure to energy was a key contributor to its performance. Energy led the way, with the WTI-based S&P GSCI Crude Oil up 55.0%, bouncing impressively off the lows in April….

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Jan 2, 2020

Strongest Annual Performance for the S&P GSCI Since 2007

The S&P GSCI ended 2019 up 17.6%. This was the S&P GSCI’s 10th-strongest performance since 1990 and its best annual return since the heights of the so-called commodity super cycle in 2007. Across the commodity markets, gains were driven by the petroleum complex and precious metals, while agriculture and livestock detracted from headline performance. Petroleum…

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Dec 16, 2019

Commodities – What to Watch for in 2020

In this blog post, we present five eclectic thoughts for commodity investors to ponder as we look forward to the New Year and the start of a new decade. S&P 500® versus S&P GSCI Similar to the 1990s, the last decade saw equities radically outperform commodities. Prior to that, the 2000s were more volatile, with…

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Nov 1, 2019

Commodities in October – Waiting Patiently for a U.S.-China Trade Deal

The broad commodities market rose modestly in October. The S&P GSCI was up 1.2% for the month and up 10.0% YTD. The Dow Jones Commodity Index (DJCI) was up 1.9% in October and up 6.7% YTD. Gains were spread surprisingly evenly across the individual commodity markets As has been the case all year, the star…

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Jun 19, 2019

Accessing Energy and Energy Infrastructure through Master Limited Partnerships (MLPs)

In 2018, the U.S. set world production records for both natural gas and oil.[1] The growth in production is expected to continue and the U.S. is set to become a net energy exporter[2] by 2020, ending a 75-year period of dependence on imports. The increase in energy production not only shifts the dynamics of the…

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Jan 4, 2018

Commodities: Winners and Losers of 2017

The Dow Jones Commodity Index (DJCI) was up 3.0% for the month and up 4.4% YTD, and the S&P GSCI was up 4.4% with a YTD return of 5.8%. In December, livestock was the worst-performing sector in the indices, while industrial metals was the best. Of the 24 commodities tracked by the indices, 16 posted…

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Apr 24, 2017

Commodity Trends Boost Leveraged and Inverse Indices

In the context of declining commodity prices following the global financial crisis, inverse indices became popular for market participants looking to profit from negative returns. As the oil war unfolded and drove commodity prices further down, market participants took a renewed interest in using inverse indices to bet against the market. When commodities rebounded last…

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Apr 4, 2016

Every Commodity Benefits From A Falling Dollar

For the first time since June 2014, the Dollar Spot Index yoy% was negative in March. That was one of the main reasons commodities had such a strong month with the S&P GSCI gaining 4.9% and Dow Jones Commodity Index (DJCI) up 4.0%. Since commodities are priced in US dollars, when the dollar rises, it…

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Nov 7, 2014

This Cold Is Hard To Catch

Many people are asking if we are seeing withdrawals from commodities since oil has dropped about 25% since its high in June.  While we don’t track asset flows of products based off the indices, the anecdotal answer is many view this as a buying opportunity.  The IEA predicts an acceleration of oil demand growth from non-OECD countries…

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