Energy & Commodities

What’s Holding Natural Gas Prices Back?

Posted by Alex Kimani

on Thursday, 4 June 2020 8:46

The oil markets have been enjoying a period of sustained rally, thanks to a stream of positive factors including somewhat successful compliance to agreed production cuts, a partial rebound in oil demand as well as growing optimism about a possible extension to the OPEC+ cuts.  Brent prices briefly touched $40/barrel on Monday, a level they last touched several months ago with WTI looking to also breach the psychological level if OPEC+ signs off on extensions when it reconvenes on June 10.

The same, however, can hardly be said about the natural gas situation.

Natural gas prices are still flirting with decade-lows courtesy of a stubborn supply overhang thanks to a deluge from shale fields and weak demand due to unfavorable weather.

In fact, the supply glut has become so bad that even a leading producer turning off the taps has done little to boost prices. Natural gas prices have barely barged after Russia’s national oil producer (NOC), Gazprom PJSC, cut off shipments through a key link via Belarus and Poland. CLICK for complete article

The Disconnect Is Getting Wider And Wider

Posted by Tyler Durden

on Wednesday, 3 June 2020 7:02

What rioting, what 40 million unemployed, what second wave? The MSCI All Country World Index has risen for 8 days in a row, a testament to the fact that not only retail investors but global markets now view stocks as a risk free asset, assuring that the next bursting of the bubble will be unforgettable, prompting even Bill Dudley to say on BBG TV that “some Fed intervention has created a bit of moral hazard.” That’s right Bill, and it may have something to do with the fact that overnight America burned for an 8th consecutive day in nationwide riots as tens of thousands of people defied U.S. curfews to take to the streets.

Anyway, until the next crash all one can do is buy, confident that central banks will always be there to step in and bail everyone out, and sure enough world shares hit three-month highs on Wednesday and the dollar fell for the sixth day on the usual narrative of “hope” and “optimism” for more monetary stimulus and the global economic reopening, while ignoring the worst civil unrest in the United States in 50 years as well as rising COVID-19 tolls. Read More

Which countries might implement negative interest rates next?

Posted by Tom Lewis

on Tuesday, 2 June 2020 6:36

The world is currently navigating through uncharted economic waters as the coronavirus lockdown has sent many economies globally into a significant recession. Historic monetary and fiscal policy has been deployed these last few months, which seems to be far from over.

Now many economies are beginning to consider negative interest rates due to the lack of options to combat a recession. Historically, Central Banks would have the option to dramatically cut rates to help stimulate the economy, but today throughout all major economies, interest rates are already at extreme lows. Read More

Big Fat Idea – Time to Add Copper to Your Portfolio?

Posted by MoneyTalks Editor

on Monday, 1 June 2020 10:18

Kodiak Copper CEO Claudia Tornquist joins Mike to talk about the supply and demand situation for copper, it’s importance to the green technology revolution, and where investors can look for good copper assets and companies in the stock market.

The Fed’s Are Looking For a “Big Idea”

Posted by Michael Campbell

on Monday, 1 June 2020 8:49

But there’s no big idea to supercharge the economy when the biggest obstacle is that so many politicians don’t think growing the economy should be the top priority.