• Monetary Metals
    02/09/2016 - 02:05
    On Jan 28, the price of silver flash crashed. This irregularity occurred around the silver fix. The spot price was $14.40 but the fix was $13.58.

Contango

Tyler Durden's picture

The First Warning Sign That Cushing May Be About To Overflow





Enterprise Products Partners has told at least some counterparties that it is experiencing delays in delivering crude from its tanks, according to three sources who were informed of unspecified "terminalling and pump" issues.  The hiccups may be a sign of things to come as traders fear a further increase in stocks at Cushing would test the upper limits of tanks and cause the next leg of an 18-month rout.

 
Tyler Durden's picture

Crude Sinks To Day Lows After Goldman Explains Why No Oil Production Cuts Are Coming





"Despite the sharp bounce in oil prices that these headlines generated, we do not expect such a cut will occur unless global growth weakens sharply from current levels, which is not our economists' forecast. This view is anchored by our belief that such a cut would be self-defeating given the short-cycle of shale production and the only nascent non-OPEC supply response to OPEC's November 2014 decision to maximize long-term revenues."

 
Monetary Metals's picture

Monetary Metals Brief 2016





We have made a contrarian call for a falling silver price and a rising gold to silver ratio for years. This ratio has risen a lot during this time. Are we ready to change our call yet?

 
Tyler Durden's picture

Frontrunning: January 28





  • Unease over Fed rate path dents European stocks (Reuters)
  • Global Stocks Pressured After Fed Statement (WSJ)
  • Japan's Economy Minister Amari to Resign Over Graft Scandal (BBG)
  • Authorities working to clear remaining protesters in Oregon occupation (Reuters)
  • China Sharpens Efforts to Halt Money Outflow (WSJ)
  • Eurozone January Economic Sentiment Falls Sharply, Hits 5-Mth Low (MNI)
 
EconMatters's picture

Oil Markets Futures Curve Have Little Predictive Value of Future Price





Sort of like all those do it yourself Gold Mining shows hitting the reality television scene pretty much nailing the near term top in the gold market.

 
Tyler Durden's picture

Chinese Stocks Plunge, Asia At 4 Year Lows But PBOC Currency Intervention Pushes US Futures Higher





Initially both European stocks and US equity futures were grateful that China has picked at least one asset class to prop up overnight, and rose in an extremely illiquid market with European shares gaining for first time in 4 days, as S&P futures rise even as the MSCI Asia Pacific ex-Japan index just fell to the lowest level in more than 4 years. However, as of moments ago the Stoxx 600 had faded all its earlier gains and was trading near the flatline, as an algo takes out all stops on the top and bottom once more, and looks set to move on to US futures shortly.

 
Tim Knight from Slope of Hope's picture

The Gartman Grid





It only takes a moment for the observant viewer to ascertain the state of each of these two realities. There is no Schrodinger's Cat in Dennis' world.

 
Tyler Durden's picture

Gartman Turns "Very, Very Quietly Bullish Of Crude" Even As Stock Prices Set To "Head Materially Lower"





"... we fear that prices are soon to head lower… and perhaps materially so. Thus, it is not only wise, it is reasonable, that we shall increase the size of our derivatives positions to make quite certain that our net long position is covered completely and that we are indeed as “net neutral” as we can possibly be.... ... we do find ourselves quietly… very, very quietly… turning away from being manifestly and overtly bearish of crude to being bullish as the term structures continue to shift."

 
Tyler Durden's picture

Overflowing Global Oil Storage Leads To Soaring Supertanker Rates





Oil tanker rates soared to the highest in seven years amid an acceleration in the number of bookings and signs that the ships are being delayed when unloading due to a lack of space in on-land storage tanks. This means that day rates for 2 million-barrel carrying ships sailing to Japan from Saudi Arabia, the industry’s benchmark route, surged to $111,359, the highest since July 2008,

 
Tyler Durden's picture

Something Very Strange Is Taking Place Off The Coast Of Galveston, TX





Oil storage problems are so severe that traders asking ships to go slow, and that is where we see something very strange occurring off the coast near Galveston, TX.

 
Tyler Durden's picture

WTI Crude Slumps To $43 Handle As Contango Collapses To 5-Month Lows Amid Growing "Over-Supply" Concerns





At $43.96 (for the Dec contract), WTI is trading at its lowest level since August 28th (in the middle of the month-end massacre). The WTI-Brent  spread is at its widest in over 2 weeks "stressing the need for U.S. output to drop to get rid of the oversupply," warns Commerzbank commodity strategist Carsten Fritsch. Even more worrisome (for future hope), is the plunge in prompt contango (1st month - 2nd month) which has collapsed to 5-month lows.

 
Sprott Money's picture

The Cost of Physical Gold vs. Futures





If you’re sophisticated and have a bit of luck, you could end holding your gold exposure at zero or even make a profit.

 
Tyler Durden's picture

Teetering Trannies? Oil "Could Get Very Very Ugly, Very Very Quickly"





As WTI Crude tests new lows this morning (Dec contract $45.32) after API reported a huge build, we can't help but wonder "what happens next" in Dow Transports as the exuberant index has decoupled from oil for the 3rd time in a week... the only saving grace for the collapse in oil - Gartman warned "this could get very, very ugly and do so very, very quickly."

 
Tyler Durden's picture

Oil Stumbles Below $49 As Goldman Warns "Lower For Even Longer"





Despite its dubious track record, oil prices are stumbling after Goldman Sachs releases a report calling for oil prices to remain lower for even longer, calling for a drop to $50 within the next 6 months.

 
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