What Happens To Oil Next: The Well-Forgotten Answer?

The last four days have seen WTI Crude prices plunge almost 10% from their cycle peak near $73 to a $65 handle overnight. This is the longest run of losses in almost four months as Saudi Arabia and Russia said they are discussing raising output to ease…

Supply-Side Shock: Norwegian Salmon Prices Are Going Wild

Norwegian salmon spot prices just tagged a historical high as faltering supply combines with increasing global demand. This has unleashed a perfect storm sending prices above a multi-year neckline of NOK 70 (€7.48/$8.66), and tagged fresh highs around NOK 80 (€8.40/$9.90) — however, this price…

Why Higher Oil Results In Higher Yields: A Surprise Explanation From JPMorgan

When one considers the relationship between crude oil prices and 10Y yields, conventional wisdom traditionally looks at the correlation between 10Y Breakevens – i.e., the inflation expectation component of interest rates while when combined with real rates make up nominal 10Y yields – and the…

This Is How The “Oil Price Shock” Will Hurt The US Economy

One month ago, when looking at the sharp spike in oil and gasoline prices (which at the time averaged $2.73), we said that the surge in energy costs  – largely the result of geopolitical risk emanating from Iran for which Trump was been responsible –…

Subprime Chaos: The Auto Bubble’s Bursting And The Data Is Worse Than 2008

Authored by Adem Tumerkan via Palisade Research, Last week, used car prices had their biggest drop since 2009 – directly after the financial market meltdown of 2008. Right now, the auto market is showing signs of incredible worry. Delinquent subprime auto-loans are higher than they were in…

WTI/RBOB Bounce After Crude Draw Despite New Record Production

WTI/RBOB prices traded lower since last night’s API-reported surprise crude draw but a 1.404mm draw (and bid gasoline draw) reported by DOE prompted a buying knee-jerk in prices. Production continued to rise to a new record high. Ahead of the data, Bloomberg explained that the…

WTI/RBOB Extend Rebound After Surprise Crude Inventory Draw

WTI/RBOB prices ended the day lower but bounced a little after Trump’s statement, running flat into API but a pushed WTI briefly back above $70 following a surprise crude draw (and large product draws).   API Crude -1.85mm (+1mm exp) Cushing +1.653m Gasoline -2.055mm Distillates…

Globally Synchronized Disappointment

Authored by Jeffrey Snider via Alhambra Investment Partners, Like so many financial prices, copper’s is tied to both money and economic fundamentals. They call it Dr. Copper for a reason, good as it has been in suggesting ahead of time the direction for the global…

Goldman’s Clients Are Getting Concerned About Rising Oil Prices

Rising oil prices are great for OPEC and oil exporters, for US shale producers and their capex plans (or at least, stock buybacks plans), and for those long energy equities. They are less great for everything else, and carry a long list of adverse consequences…

WTI/RBOB Slide After Surprise Crude, Gasoline Builds; Record Production

WTI/RBOB prices have gone nowhere since  API reported a surprise crude build, but after last week’s across the board inventory draws, DOE reported surprise builds in crude and gasoline inventories and production hit a new record high, sending  prices lower. Bloomberg Intelligence’s Senior Energy Analyst…