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24 Jul 2023

Oil prices are set to rise in the second half of the year, as supply struggles to meet demand, according to an International Energy Forum official.

Joseph McMonigle, secretary general of the International Energy Forum, attributes the push in oil prices to an increasing demand from China and India - two of the biggest oil consumers right after the U.S. Source: CNBC

20 Jul 2023

According to the latest BofA survey, fund managers are now UNDERWEIGHT commodities

The last time fund managers were this bearish on #commodities, #crudeoil futures were literally trading below zero. Source: BofA

3 Jul 2023

Saudi Arabia announced that it would extend its voluntary, unilateral oil production cut by one month, until at least August.

Moments later, OPEC+ ally Russia announced it would "voluntarily" extend its August oil export cut by 500,000 barrels a day to ensure oil market balance, Deputy Prime Minister Alexander Novak said in a statement. The 1 million-barrel-per-day Saudi production cut that began this month - in addition to existing OPEC+-agreed restrictions - will continue into August and could be extended, according to a statement issued by the state-run Saudi Press Agency. The cuts will take the kingdom's production to around 9 million barrels a day, its lowest level for several years. Source: zerohedge

15 May 2023

Is the next Commodity Super-Cycle right around the corner?

In recent years, commodity prices have reached a 50-year low relative to overall equity markets (S&P 500). Historically, lows in the ratio of commodities to equities have corresponded with the beginning of new commodity supercycles. As Visual Capitalist's Bruno Venditti shows in the infographic, using data from Incrementum AG and Crescat Capital LLC, the relationship between commodities and U.S. equities has varied greatly over the last five decades.

21 Apr 2023

Europe is filling its gas storage weeks early

The world is becoming awash with natural gas, pushing prices lower and creating an overabundance of the fuel in both Europe and Asia — at least for the next few weeks - Bloomberg

20 Apr 2023

Gold holdings as % of Nations private net wealth

Source: QuantInvestor.substack.com

4 Apr 2023

OPEC is less worried about market share. Hence the production cut

Great point made by John Arnold on Twitter. The OPEC cut was only possible because of the inability/unwillingness of the US shale oil sector to grow at the same rate as it was in 2016-2020. With much less supply elasticity in the market today, OPEC is less worried about losing market share if it defends higher prices. Source chart: EIA

4 Apr 2023

Commodities: why this time is different

To address the recent comparisons with 2008: today's macro setup could not be more different than the Global Financial Crisis. Back then, capital spending for oil producers was at record levels after a decade-long bull market in natural resource businesses. Today, aggregate capex is historically depressed while the commodities-to-equities ratio is near 50-year lows. Source: Tavi Costa, Crescat Capital, Bloomberg

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