Finance

• Billionaire Soros Hits the Energy Scene with New Gusto

  What is New York billionaire-philanthropist George Soros spending his money on? New position in energy companies in Houston, Texas to the tune of $88.4 million in the first quarter of this year alone. So far in Q1 2013, the New York-based Soros Fund Management LLC hedge fund has acquired an $8.4% stake in Apache Corp (APA), a $7.4 million stake in C&J Energy Services Inc. (CJES), a $6.5 million stake in Cameron International Corp (CAM), a $6.5 million stake in Cheniere Energy Inc. (LNG), a $16.7 million stake in Southwestern Energy co (SWN) and a $22.5 million stake in Ultra…

• Don’t Get Excited by the Dead Cat Bounce in Gold Prices

  On Monday, May 13, 2013 we wrote that Gold Prices would Re-Test $1350/oz level and so they did, trading sub $1340/0z at one stage. Gold had fallen for 7 straight days from $1470/oz before the slide was arrested earlier today with a bounce that pushed gold up to $1391/oz. This move correlates inversely with the 7 day winning streak put in by the US$, which also came to an abrupt halt today when it fell 0.50% to close at 83.93 on the US$ Index. As far as we can ascertain there was a few frantic minutes of buying that moved…

• Commodity Update: Open Interest Analysis for May 20th, 2013

  Crude oil:July WTI crude oil advanced 64 cents on volume of 632,229 contracts. Open interest declined by 4,828 contracts, which relative to volume is approximately 60% less than average. The June contract accounted for loss of 37,325 of open interest because it will shortly expire. We continue to advise a stand aside position in crude oil due to the inherent risk involved in all markets, especially when the equity market begins to setback.Brent crude:July Brent crude gained 16 cents on very light volume of 440,721 contracts. Volume was the lowest since May 6 when 388,255 contracts were traded. On May…

• Technical Review of the Energy Markets – 21st May 2013

  Brent Crude did push on for 105.31 & made a high for a high for the day exactly here as predicted. We are overbought now & should see some profit taking after 4 days of gains but if we continue higher look for a retest of 105.95/106.05 May highs. This should hold again this week so we could exit longs & try shorts with stops above 106.50 for a test of March lows at 106.80. Immediate support is at 104.40/30 so a break below here should trigger sell orders & keep the market under pressure for 103.85/75. This should hold…

• Commodity Update: Open Interest Analysis for May 17th, 2013

  Crude oil:June WTI crude oil gained 84 cents on light volume of 574,864 contracts. Volume was the lowest since April 29 when 466,236 contracts were traded and June gasoline closed at $94.50. On May 17, open interest declined by 4,153 contracts, which relative to volume is approximately 45% less than average. Since the June contract is about to go off the board, open interest in this month declined by 26,537 contracts. As this report is being compiled, crude oil is trading 89 cents higher and has made a new high for the move at $97.35.With WTI crude, heating oil and…

• Total’s Bright Future: Opportunities Abound

  Despite the fact that the European economy continues to struggle, international oil companies (IOCs) headquartered in the region (like Total) will stand to benefit immensely from the seemingly inevitable - albeit gradual - European nuclear phaseout. In 2009, oil & gas (37% oil, 24% gas) accounted for 61% of EU energy consumption versus 14% for nuclear. As the percentage of nuclear power consumption begins to decline, I expect the oil & gas share of the European energy mix to increase significantly. This energy void left by nuclear presents a unique opportunity for European oil & gas companies to expand sales…

• Technical Review of the Energy Markets - 20th May 2013

  RBOB Gasoline tested the 100 day moving average at 292.81 but fortunately topped at 292.76 to keep us short. We are now overbought & could head lower as we start this week. First support at 289/87 with the 200 day moving average & this did in fact hold the pullback on Friday, but below here we could see 283.60/282.50 tested to take profit on any remaining shorts. We can use 289.50/291 for a selling opportunity again today with stops above the 100 day moving average at 292.84. A break higher then targets 294.91, possibly 297.76.(Click here to enlarge.)Natural Gas did…

• BP, Shell, Statoil, Platts Raided for Price-Fixing

  The European Union Commission has raided the offices of Royal Dutch Shell, Statoil and Platts over energy price-fixing concerns in an investigation that could take years to conclude. Britain’s BP, Norway’s Statoil and Shell, which is listed in London and Amsterdam, were raided on suspicion that the oil and gas giants have attempted to manipulate energy prices by colluding to report distorted prices and to prevent other companies from submitting their prices that were not in line with this alleged collusion. BP, Statoil and Shell submit their prices to Platts Market on Close (MOC), which then publishes the final trading…

• Long Term Market Forecasts Becoming Ever More Unreliable

  News of the future was, in my youth, something that one found by crossing the palm of a lady in a dark tent with a piece or two of silver (or the modern equivalent) at one of the fairs that came to town. Such opportunities still exist, with all the caveats that existed back then likely still being in force. However projecting the future, whether of the weather, the likely corn crop this year in the United States, or the production of crude oil by the nations of the world has become a much bigger business with copious tables, graphs…

• Oil Market Forecast & Review 17th May 2013

  After falling from $97.38 on May 6 to $92.40 on May 15, July crude oil rebounded on May 16 to regain almost 50% of its recent break. This turnaround was expected, but most traders were looking for a test of the retracement zone at $91.77 to $90.45 before the rebound began. Despite showing strength on the daily chart, the market is still having trouble with a pair of main tops at $98.22 and $99.77 as well as a downtrending resistance line at $97.71. Until these resistance areas are penetrated with conviction, expectations are for the market to remain in a…