• 45 mins Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 3 hours South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 6 hours Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 6 hours Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 8 hours Iraq Steps In To Offset Falling Venezuela Oil Production
  • 10 hours ConocoPhillips Sets Price Ceiling For New Projects
  • 3 days Shell Oil Trading Head Steps Down After 29 Years
  • 3 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 3 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 3 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 3 days Venezuela Officially In Default
  • 3 days Iran Prepares To Export LNG To Boost Trade Relations
  • 3 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 4 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 4 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 4 days Rosneft Announces Completion Of World’s Longest Well
  • 4 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 4 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 4 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 4 days Santos Admits It Rejected $7.2B Takeover Bid
  • 5 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 5 days Africa’s Richest Woman Fired From Sonangol
  • 5 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 5 days Russian Hackers Target British Energy Industry
  • 5 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 5 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 5 days Lower Oil Prices Benefit European Refiners
  • 5 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 6 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 6 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 6 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 6 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 6 days OPEC To Recruit New Members To Fight Market Imbalance
  • 6 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 7 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 7 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 7 days GE Considers Selling Baker Hughes Assets
  • 7 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 7 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 7 days Aramco To List Shares In Hong Kong ‘For Sure’
Alt Text

Goldman’s Commodity Unit Sees Worst Q1 In A Decade

Investment bank Goldman Sachs saw…

Alt Text

5 Big Gainers In Oil & Gas This Week

Energy stocks have been among…

Alt Text

Why Wall Street Is Bullish On Refiners

Wells Fargo has noted that…

The Hot Money Likes Commodities These Days

The Hot Money Likes Commodities These Days

Inflows of speculative investment money into gold, copper and oil continue unabated and the numbers are staggering.

I wrote a few months back about investment inflows into commodities setting a new weekly record, at just over $1 billion. In November and so far into December that record has been left in the dust.

As of December 2 (the last date for which we have data), global investment inflows into commodities had run over $1 billion weekly for three weeks straight.

In the week from November 12 to 18, a new record was set: $1.341 billion. Nearly 30% higher than the previous weekly record.

The following week, November 19 to 25, was nearly identical. With an additional $1.336 billion flowing into commodities investments.

And the week from November 26 to December 2 rang up another $1.138 billion.

A little perspective on just how inflated these numbers are. Since the beginning of 2009, an estimated total of $17 billion has been invested worldwide in commodities. $4.4 billion of that has come in just the last month. That's a 35% increase in less than 30 days.

This size of speculative inflow is unparalleled, plain and simple. The bigger question is: will all of this hot money stay parked? If metals prices start to fall (as gold has been the last few days), will investors get spooked and head for the hills?

Hot money can drive investments up quickly. And it can drive them down just as rapidly when it exits. Given the size of investment that has been made over the last several months, much of what happens with commodities prices going forward is going to depend on this balance.

Here's to sensible speculation,

By. Dave Forest of Notela Resources




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News