Market players marched into the 2017 trading year adopting a risk-on attitude, amid growing optimism over Donald Trump pushing ahead with a large fiscal spending package. The “trump effect” not only elevated global stocks to 19-month highs in January, but also sent the U.S. dollar to its highest level in 14 years.
Ring in the new year with a solid crude bull oil market. Happy Bull Year! Oil prices are on the rise as the draws in oil inventory are just too big to be ignored. The U.S. oil glut is now just a memory and now we are seeing inventories at key Gulf Coast and Cushing, Okla., areas at multi-year lows.
The gold volatility index moved to a new all-time low and there was no meaningful action in gold recently. Well, we profited on the decline and on the following upswing, but the price action that we saw was nothing to call home about. For months, gold has been moving around the $1,300 per ounce level and it’s trading relatively close to it also today. But, will this action persist for much longer? Not likely. It seems that something is about to hit the fan.
Welcome to leap year 2018! Ok, I know what you are thinking, you have not heard that it's a leap year. Well, 2018 is not a traditional leap year, but it will be a leap year for crude. Oil struggled this year as the market failed to be convinced that the combination of OPEC and Non-OPEC production cuts and strong global demand could reduce global supply.
Yesterday was all about commodities; and the S&P 500 posted its lowest volume since the day after Thanksgiving. The major catalyst was crude oil, achieving $60 per barrel and trading to the highest level since June 25, 2015.
What good is it for someone to gain a pipeline, yet lose another? The Forties pipeline is coming back but a loss of a Libyan oil pipeline has the oil bears in a less than festive mood. WTI crude oil hit $60 a barrel yesterday for the first time in 2-and-a-half years and Brent crude hit over $67 a barrel on reports that armed men blew up a pipeline pumping crude oil to Es Sider port on, cutting Libya’s output by up to 100,000 barrels per day.