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 Read more […]
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 Read more […]
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 Read more […]
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 Read more […]
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 Read more […]
Investors – both stock investors and commodities traders – are having a bad week as oil prices fall lower and lower and the stock market follows close behind. (see chart 1) In all markets there are buyers and sellers and in the energy market most people (and most equity investors) are buyers. Cheap energy, especially Read more […]
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 […]
Every conversation I’ve had today with people from Nashville to Toronto has started with how cold it is outside. After the shock of the cold and when the heating bills come due, the conversation may turn to how expensive heat was in January. That, of course, is at least for those who don’t invest in Read more […]
When I see a forecast of freezing weather, unlike most, I don’t think about how I will dress warmly or prepare for the cold. As a commodity lady, I think about how much the price of natural gas will increase. However when I saw this on TV yesterday, I had more food for thought than Read more […]
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 […]
