Commodities

Warm winter fears, growing supply and full storage concerns have driven a steep fall in US natural gas prices that are now within 8c of the April 2012 low With prices unlikely to sharply recover during 2016, we outline the companies most exposed to US gas. US gas prices fell steeply… Read More »

The need to reduce costs and improve efficiency within the Oil & Gas industry was clear during the 3Q results with oil prices languishing below $50/bl and sector earnings down 54% y/y Although cash flow was supported by the combination of a strong downstream environment and working capital release, that… Read More »

An endless number of factors can influence commodity prices. The headlines this year are focused on the global weather pattern known as El Niño and its potential to impact all areas of the commodity complex. Based on their data, the National Oceanic and Atmospheric Administration (NOAA), the organization responsible for… Read More »

The build in Atlantic distillate inventories this year has been large, following near-record refinery utilization in both the US and Europe, only modest demand growth, especially relative to gasoline, and increased imports from the East on refinery expansion and rising Chinese exports. Atlantic basin distillate storage utilization is alarmingly highDistillate… Read More »

With the swift and severe fall in oil prices over the past year or so, the energy sector as a whole has been trying to adjust Arguably, given the relatively higher breakeven oil price of offshore developments, subsea E&C players have been in the eye of the storm, with aggregate… Read More »

Following a disappointing September US employment report (released October 2), oil prices began to rally, and have subsequently climbed over 10% Commodity prices have rallied over the last two weeksOctober has seen both oil and metals prices rally sharply, on the back of weaker US macro data, announced supply cuts… Read More »

2015 has been characterised as a year of belt-tightening for miners, farmers and energy extraction companies in certain parts of the world The notable exception has been the Organization of the Petroleum Exporting Countries (OPEC), which changed strategy last November to produce as much oil as it can to gain… Read More »

The week ended with a disappointing US labour market report, which has pushed out expectations for the Federal Reserve’s rate increase even further Gold ETPs saw net inflows of US$5.5mn ahead of the release of the jobs report. That marked the third consecutive week of gold inflows. While significantly below… Read More »

Last week commodities diverged, largely trading on their individual fundamentals Palladium was the best performer, gaining 8% as investors fear a consumer backlash against diesel autocatalysts following thescandal at Volkswagen (which could favour palladium-heavy gasoline autocatalysts). Industrial metals were hurt again last week as the Caixin China PMI manufacturing data… Read More »

China’s slowdown weighs on cyclical commodities, with uncertainty keeping investors defensive. Uncertainty over the outlook of the global recovery has been compounded by the US Federal Reserve’s decision to delay its rate tightening cycle. The Fed’s emphasis on subdued inflation and the spillover effects of a slowdown in the Chinese… Read More »