26 Mar

Oil Futures Spread: Bullish Sentiments Decline

WRITTEN BY Rabindra Samanta

Futures spread

On March 25, the US crude oil May 2019 futures closed just ~$0.08 above the May 2020 futures. On March 18, the futures spread was at a premium of $0.24. On March 18–25, US crude oil May futures fell 0.9%.

Oil Futures Spread: Bullish Sentiments Decline

Fall in bullish sentiments

The market sentiment towards the oil demand and supply situation is reflected in the futures spread. In the last five trading sessions, the spread’s premium contracted. US crude oil prices fell 0.9%. Fear of an economic slowdown dragged the spread’s premium and oil prices. If the spread’s premium flips to a discount, it would signal more bearish sentiments for oil.

Energy stocks

On March 18–25, oil-weighted stocks Diamondback Energy (FANG), Callon Petroleum (CPE), and Carrizo Oil & Gas (CRZO) fell 3.4%, 4.1%, and 4.4%, respectively, and underperformed their peers.

Forward curve

As of March 25, the US crude oil futures contracts for May and October were priced in ascending order. The price pattern is a negative sign for ETFs that follow US crude oil futures like the ProShares Ultra Bloomberg Crude Oil ETF (UCO) and the United States 12 Month Oil ETF (USL).

Latest articles

German chip maker Infineon Technologies has reportedly raised 1.55 billion euros (~$1.74 billion) in capital by selling its shares to fund its acquisition of Cypress Semiconductor (CY). Infineon has sold ~113 million new shares at 13.70 euros each.

As of June 18, Dunkin’ Brands (DNKN) was trading at $80.07, an 8.9% rise since reporting its first-quarter earnings on May 2. Also, DNKN was trading at a premium of 29.8% from its 52-week low of $61.69 and a discount of 1.6% from its 52-week high of $81.40.

19 Jun

Are Lower Oil Prices Weighing on ExxonMobil Stock?

WRITTEN BY Maitali Ramkumar

ExxonMobil (XOM) stock has fallen 7.1% in the second quarter so far. Let's review ExxonMobil's stock performance in comparison to oil price changes and equity market movements in the quarter.

19 Jun

As Facebook Unveils Libra, MSFT and CRM Join a Blockchain Group

WRITTEN BY Mayur Sontakke, CFA, FRM

On June 18, Facebook (FB) launched Libra, its own cryptocurrency. On the same day, CoinDesk published another piece of blockchain news that didn’t receive as much fanfare as Facebook’s Libra news. Was the timing a coincidence? We think not.

Uber Technologies (UBER) has picked Melbourne as another test site for its flying taxi service known as UberAir. The Australian city is the first international test site Uber has chosen for its flying taxi service. The addition of Melbourne brings the number of test locations Uber has picked for its UberAir service to three.

Lyft (LYFT) and Uber Technologies (UBER) are pushing back against California legislation that would require them to recognize their drivers as employees rather than independent contractors. The legislation would require companies like Lyft to give their drivers the compensation and benefits spelled out under California’s employment regulations.

172.31.16.229