More From Maxwell Gold
A Glance at Future Prospects for the Crude Oil Market
ETF Securities Outlook: Crude Oil OPEC’s decision to extend its production cuts through March 2018 was met with disappointment in markets. While this is a positive sign for the global crude market which continues to rebalance from a multi-year supply glut, expectations of continued US productions will remain in focus. There have been encouraging signs […]
Can Backwardation Drive Energy Returns?
ETF Securities A return to backwardation? Among the three components of total return when investing in futures contracts (price return, roll yield, and collateral yield), the roll yield for the energy sector has been a continuous performance drag over the last decade (see “Drag on performance” chart below). Oil futures markets are most often in […]
Significance of the US Dollar in Driving Oil and Energy Prices
ETF Securities Changing Dollar Dynamic The rule of thumb known to many investors is that the US dollar has an inverse relationship with oil and energy prices. This negative relationship was most prominent from 2003 to 2014 (see “Oil’s inverse relationship to the dollar was most prominent from 2003 through 2014” chart below). During this […]
What are the Traditional Drivers of Energy Returns?
ETF Securities Summary Changes in the global oil supply dynamic may likely continue to weigh on the drivers for oil and energy prices. The traditional negative relationship between the US Dollar and oil prices has broken down and is currently positive. Roll and collateral yields may see further prominence. The expected global economic backdrop remains […]