Crude

Crude Crashes Most In 9 Months

WTI Crude is down over 5% to $46.50 - its biggest daily drop since early September 2015, with East Coast gas inventories at a record high...

WTI Plunges To $46 Handle After Unexpected Cushing Build

WTI Crude has been leaking lower all night as supply disruptions ease and demand (cough China cough) expectations fall but Genscape's report of an unexpected 230k barrel build at Cushing has sparked another leg lower, back to a $46 handle...

Precious Metals Surge Continues, As Does Italian Bank Pain, In Holiday-Shortened Session

In today's US holiday-impacted session, the biggest overnight story was the dramatic surge in precious metals, which saw silver briefly soar above $21 following a Chinese short squeeze sending the metal as much as 7% higher overnight, its biggest one day gain since December 1, 2014. As we reported overnight, silver touched a two-year high and gold rallied for a fourth day after the Brexit vote spurred demand for havens. The catalyst is familiar: speculation central banks in some of the world’s leading economies will step up monetary stimulus in the wake of Britain’s decision to leave the European Union.

America's "Soaring" Gasoline And Oil Demand Was Just An Illusion: How The EIA Fooled The Algos

"Could it be that the U.S. demand that's helped drive a near doubling of oil prices since mid-February was illusory?" That may be a reasonable conclusion to draw from the latest data published by the DOE.  When looking at weekly figures, it looks like U.S. gasoline demand is soaring. But the latest monthly data, showing the numbers for April, paint a very different picture. They show U.S. gasoline consumption falling between March and April. "The discrepancy between the two sets of data that gives cause for concern."

"Off The Rails" - What Slumping Rail Traffic Tells Us About The U.S. Economy

The weekly rail traffic report published by the Association of American Railroads (“AAR”) can provide a reasonable snapshot of US economic performance almost in real time by looking at diverse categories of transported goods and commodities. It can also highlight important changes in trends and areas of weakness, or red flags. So let’s see what these indicators are telling us midway through 2016.

Futures Stumble As Global Bond Yields Drop To All Time Lows, Precious Metals Spike

Whether it is due to the conclusion of quarter-end window dressing, or due to a more poor manufacturing data out of China overnight, but the new quarter is starting off poorly for risk with Europe flat and US equities lower, while the scramble for safety means that bond yields across the developed world just hit new all time lows as precious metals are surging once again on ongoing speculation central banks will do anything to keep markets propped up and buy up even more assets.

Oil Bulls Beware: Crude Demand Is About To Slide As China's SPR Is "Close To Capacity"

China has taken the opportunity of lower oil prices since early-2015 to accelerate the strategic petroleum reserve (SPR) builds at c.1mbd, pushing the total oil in stock under SPR to an estimated 400mmbbl, or 53 days of net crude oil import equivalent. This volume might be close to the capacity limit and together with potential teapot utilization pullback and slower-than-expected demand from China could increase near-term risks to global oil prices (c.1.2mbd impact).

Day 3 Of Global Post-Brexit Rally: European Stocks, US Futures At Session Highs

Day three of the post-Brexit rally continues, and after some initial weakness due to concerns about Chinese currency devaluation, both European stock and US equity futures were trading at session highs, facilitated by yesterday's stress test results which saw dozens of US banks unleash a tsunami of stock buyback announcement which in turn pushed S&P futures to new post-Brexit highs.