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So far Jess has created 176 blog entries.

Choppy times

The oil market has been topsy turvy lately, and last week was no exception. Friday’s subdued finish masked what was a lively week as prices rebounded strongly from a sharp drop in the prior seven-day period. Initial support came courtesy of weather-related supply disruptions on the other side of the Atlantic. Hurricane Sally barrelled through [...]

2020-09-21T11:16:37+00:00September 21st, 2020|

The Fed, the storm, and the EIA

There were three major events yesterday that shaped oil prices and judging by the decent rally they were constructive on balance. The US central bank now expects a smaller economic contraction for this year than previously thought. It is set to stand at 3.7%, down from 6.5% estimated in June. The job market will also [...]

2020-09-17T08:24:14+00:00September 17th, 2020|

Opposing forces

The combination of vaccine hopes, and tropical storm Sally prevented oil prices from falling significantly. This is around the fifth time since April that equities received an impromptu adrenalin shot as AstraZeneca resumed its trial of its inoculation that had to be suspended last week. None of these trials brought immediate breakthroughs in the past [...]

2020-09-18T09:04:24+00:00September 15th, 2020|

Demand expectations are the main price driver

In a hindsight it is clear why oil and equity markets tanked last week. Overoptimistic equity investors became disillusioned with the lack of tangible progress in the fight against Covid-19. Although global manufacturing and service indexes have recovered impressively from the March bloodbath the future is becoming more uncertain than before. Infection rates are on [...]

2020-09-14T09:03:47+00:00September 14th, 2020|

Down but not out

Sometimes we buy stuff just because it is relatively cheap, and we expect the price to go higher. Other times we believe that a small real profit makes more sense than a bigger unrealized gain. Yesterday the combined effort of bottom pickers and short coverers helped risky assets recover from their recent slump. At this [...]

2020-09-10T11:18:38+00:00September 10th, 2020|

Running for shelter

Risk has been off for almost a week now – oil, equities, sterling, you name it, all have been under pressure in the past few days and investors stampeded towards the exit in growing numbers yesterday. The dollar, gold and bonds, on the other hand, welcomed the money that deserted other asset classes with open [...]

2020-09-09T10:17:11+00:00September 9th, 2020|

This week’s price drivers: tech stocks and crude oil production

In the absence of the US markets yesterday saw a relatively quiet trading. Global equity prices inched higher but further strength is far from guaranteed. All eyes will be kept on US tech stocks and the Nasdaq index as investors will be keen to get a feel of Softbank’s intentions. Any hint of liquidating the [...]

2020-09-08T08:17:07+00:00September 8th, 2020|

The Whale of Wall Street

Although the US is on holiday there is no guarantee that trading will be quiet and uneventful today. Last week ended on a sour note and there is a good chance that the mood will not get any better in coming days. The recent bull run in the US stock market came to an abrupt [...]

2020-09-07T08:41:33+00:00September 7th, 2020|
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