Oil Futures Collapse Over 10% on South African Variant Risk Asset Selling

Stock markets and commodities markets sold off hard on Friday due to a new coronavirus variant identified in South Africa. The selling intensified with some countries including the UK, Singapore and Israel curbing travel from South Africa and other neighboring countries. We had seen a dead cat bounce in WTI and Brent after the SPR coordinated release plans. The new COVID-19 variant contains significantly more mutations than others raised concerns of further lockdowns and travel restrictions that could weigh heavily … Continue reading “Oil Futures Collapse Over 10% on South African Variant Risk Asset Selling”

OPEC Says US Led Planned Oil Reserves Release Will Bloat Crude Surplus

OPEC warned of oil gluts in response to the U.S. announcing it will release 50 million barrels of oil from the Strategic Petroleum Reserve to lower oil prices in parallel with other major energy consuming nations including China, India, Japan, Republic of Korea and the United Kingdom. OPEC’s advisory body ahead of a meeting with OPEC+ next week predicted that the excess in markets would expand by 1.1 million barrels a day in January. The advisory board also saw February … Continue reading “OPEC Says US Led Planned Oil Reserves Release Will Bloat Crude Surplus”

Soft U.S. 20-year Treasury Bond Auction With High Yield of 2.065%

The US Treasury 20-Year Bond Sale performed much worse than expected, garnering a D rating across the Fixed Interest desk. The tail was a lengthy 1.4 basis points with WI level at time of the auction 2.051% and the high yield of 2.065% at the auction. Heading into the auction the 10 year benchmark yield was down -2.1 basis points and the 30 year was down -0.9 basis points. Both were trading at or near the low yield for the … Continue reading “Soft U.S. 20-year Treasury Bond Auction With High Yield of 2.065%”

UK Gas Prices Jump 10% After Germany Suspends Nord Stream 2 Certification

Natural gas futures surged in Europe after Germany’s energy regulator temporarily suspended certification of the Nord Stream 2 pipeline. The move followed the Swiss-based project creating a German subsidiary to own and operate the German section of the pipeline. The Bundesnetzagentur said Nord Stream 2, which was set to begin operations this year, failed to organize an operator recognized under German law, sending gas prices higher. “The subsidiary itself must meet the requirements of the Energy Industry Act for an … Continue reading “UK Gas Prices Jump 10% After Germany Suspends Nord Stream 2 Certification”

US and European ETFs See Switch From Value To Growth Stocks in Q3

European Growth ETFs, which focus on “growth” stocks, attracted €120m in the three months to September, their strongest quarter since 2015. The move mirrored the US, where growth ETFs took in $9.4bn in Q3, the second strongest quarter on record, and reversing the $8.5bn of net outflows the sector suffered in the previous 12 months. Growth stocks typically trade at higher price-to-earnings or price-to-book-multiples The move followed European Investors in Q3 pulling a record net €3.7bn from European value ETF … Continue reading “US and European ETFs See Switch From Value To Growth Stocks in Q3”

Oats, Canola, Cotton All Pip Silver and Oil as Best Performing Futures in October

Futures and commodities contined to be volatile in October of 2021 as energy markets ran roughshod. The biggest gainers were safehaven elements such as precious metals silver, platinum and palladium along with foodstuffs such as grains. The weakest was VIX as you would expect with US stock indices at record highs

Chevron Earnings Highest Since First Quarter 2013 With Soaring Oil and Natural Gas prices in 2021

Chevron reported better than expected third quarter earnings Friday. With oil and natural gas prices at significant highs $CVX reported earnings of $6.1 billion and cash flow from operations of $8.6 billion with record free cash flow of $6.7 billion and share repurchases of $625 million. Fellow oil major Exxon also reported Friday.

ExxonMobil Deliver Strong Earnings, Raises Cash Flow, Pays Down Debt and Raises Dividend

Oil giant ExxonMobil reported better than expected third quarter earnings Friday as oil and natural gas prices hit long term highs. Crude oil and natural gas prices are now up 130% and 70% yr/yr . Cash flow generation saw XOM pay down $4 bln in debt this quarter, the year-to-date total to $11 bln.

Amazon Stock Tumbles After Missing Revenues, Guiding Far Below Consensus Expecting Labor Supply Issues To Hit Holiday Sales

Retail monster Amazon.com reported much weaker September quarter earnings Thursday.  $AMZN stock tumbled 4.5% after they guided much lower than  expected.  Amazon was already projected to grow at  the slowest in the past decade but issued an even bleaker picture blaming labor and supply issues. This is the last quarter under which the e-commerce and technology giant’s founder Jeff Bezos was CEO, as longtime company exec Andy Jassy took over the top spot on July 5. Could this be the … Continue reading “Amazon Stock Tumbles After Missing Revenues, Guiding Far Below Consensus Expecting Labor Supply Issues To Hit Holiday Sales”

Apple Earnings Another Record But Misses Expectations Due To Supply Constraints Costing $6 Billion

Consumer electronics giant Apple reported weaker September quarter earnings Thursday. iPhone sales increased nearly 47% BUT chip supply constraints impacted iPhones and iPads this quarter.Tim Cook says supply issues cost company $6 billion.