At long last, the market finally got their long awaited Federal Reserve rate increase. Yesterday, the Fed hiked the Fed Funds rate by 25 basis points, from 0.25% to 0.5%. The Fed's famously watched "dot plot" revealed that most members expect at least four rate hikes in 2016. And investors? If interest rate swaps are any indication, then investors expect no more than two rate hikes next year.
So who is right then? The Fed? Or the market? Continue reading "Fed At Odds With Markets Over Oil"
Recent data on oil prices and energy equities is painting a picture few seem to appreciate. Here are 5 under-appreciated nuggets of information that generally seem to favor a rebound in oil prices and oil companies’ stocks. At the end, I offer one significant counterpoint.
Fact #1: Growing demand: Media outlets seem to continue wondering whether global demand for oil has increased with today’s lower prices. The answer, of course, is a definite yes.
I listened a couple weeks ago to a presentation by a portfolio manager of the Guinness Atkinson Global Energy Fund (GAGEX), Jonathan Waghorn (who co-manages the fund along with Tim Guinness and Will Riley). I’ll reference information and charts from Mr. Waghorn’s presentation throughout this article. Continue reading "5 Under-Appreciated Facts About Oil… Plus One Counter-Point"
Last year, while we Americans were busy overindulging on turkey and all the fixings, OPEC ministers pulled a fast one on us. While we innocently watched football and took naps, the price of WTI crude plummeted from $74 to $68 in response to OPEC’s announcement it would leave its oil production target unchanged at 30 million barrels per day (mb/d).
Until that weekend, oil in the $60s or $70s seemed unsustainably low.
Of course, even before OPEC’s big Turkey Day declaration, oil had already fallen about 30% from its June highs of $107, due to burgeoning supplies. But the summer swoon turned out to be just the warmup for the rest of oil’s big 17-month collapse (so far). OPEC’s Thanksgiving 2014 meeting sent prices reeling and continued pressures have kept crude near its lows (around $40) even today. Continue reading "Will OPEC Be Turkeys Again?"
Last time I shared with you a clear signal from Crude oil to short Copper for a good dip down. Oil has dropped as foreseen from the $47.7 level. That's down a good $8 (17%) and it dragged Copper down along the way. This confirms Copper's tight relationship with Crude oil. Copper plummeted for a nice gain from a short position which has reached .35 (15% smaller than from Oil short) on Friday's low ($2.03). My original targets haven’t been met in both instruments ($ 37.7 Oil and $1.9 Copper), and that is why I would like to discuss my concerns with you.
Again we will start with the leading instrument in my regular cross-instrument analysis. Continue reading "Copper Update: "Black Gold" Is Too Wild"
By: Jim Nelson of Street Authority
The energy market is officially broken.
That's according to the International Energy Agency (IEA).
On November 10, the group announced that oil prices will remain low for a long time.
Next year, the agency is forecasting a barrel of crude will go for just $60... and only $80 by 2020.
For hundreds of U.S. companies caught up in the shale oil boom over the last decade, that's disastrous news. At $60 a barrel, many oil companies will not generate enough revenue to break even. Continue reading "The Winner Of The Natural Gas Boom Isn't Who You Think..."
You are now leaving a Magnifi Communities’ website and are going to a website that is not operated by Magnifi Communities. This website is operated by Magnifi LLC, an SEC registered investment adviser affiliated with Magnifi Communities.
Magnifi Communities does not endorse this website, its sponsor, or any of the policies, activities, products, or services offered on the site. We are not responsible for the content or availability of linked site.
