Interesting whiplash action today compared to yesterday as crude rises by almost 4% despite an EIA reported rise in crude inventories and a drop in gasoline stocks, an improvement in durable goods orders and the first decline in 10 weeks at the inventory number in Cushing, OK where deliveries for the WTI crude oil contract…Read more
Crude Oil outlook
Crude oil prices outlook: market liquidity and trading volumes
More from Nauman’s note at InvestBank The Crude oil market like any other financial market is also a function of available liquidity in the system. Considering trading volumes as a proxy to the market liquidity, there was a marked increase observed in oil trading volumes during the later part of 2006, leading to an increase…Read more
The central bank of oil
Great article in FT describing Saudi Arabia as the central bank of oil, targeting physical availability of crude oil versus price levels, the resulting central bankerisque inaction and its impact on future crude oil prices. I was wondering what would happen to this role when Iraq is done bringing its 12 million barrels of production…Read more