The Smell of Natural Gas: Ripe for a Pullback?
On October 18, natural gas November futures closed at $2.85 per MMBtu (million British thermal units)—3.6% below the last trading session’s closing price.
Miscellaneous
How Do Aerospace and Defense Sector Dividends Look?
This series will discuss the top ten aerospace and defense products and services companies based on their dividend yields.
Reading the Drop in Precious Metals on Monday, October 16
After the rise we saw on Friday, October 13, precious metals had a down day on Monday, October 16.
A Brief New Look at the Technical Indicators of Mining Stocks
The Physical Silver Shares (SIVR) and Physical Swiss Gold Shares (SGOL) witnessed rises on Friday, October 16, climbing 0.98% and 0.81%, respectively.
Will Weather Surprise Natural Gas Bulls?
November natural gas (UGAZ)(DGAZ) futures contracts fell 1.13% to $2.96 per MMBtu (million British thermal units) in NYMEX electronic trading at 2:05 AM EST on October 16.
Relative Strength Index Indicators of Mining Shares in October
On October 11, 2017, Randgold Resources, Pan American Silver, Barrick Gold, and Kinross Gold had implied volatility readings of 25.0%, 34.0%, 29.1%, and 41.6%, respectively.
A Correlation Analysis of Some Important Miners
Among the miners that we’re looking at in this part of the series, Sibanye Gold has the lowest correlation to gold on a YTD basis, while Gold Fields has the highest correlation to gold.
How Miners Correlate to Gold
Mining funds that have a strong relationship to precious metals are the Global X Silver Miners (SIL) and the VanEck Vectors Gold Miners (GDX).
Why the Natural Gas Futures Spread Is Concerning Markets
When the futures spread is at a premium, or the premium rises, it could hamper the rise in natural gas prices.
How Iran and Iraq’s Crude Oil Exports Could impact crude Oil Prices
Iraq’s crude oil exports hit 3.98 MMbpd (million barrels per day) in September 2017, according to Bloomberg—its highest level since December 2016.
Mining Stocks Today: Your Technical Updates
On October 5, Gold Fields, Agnico-Eagle, Cia De Minas Buenaventura, and AngloGold had implied volatility readings of 40.4%, 33.6%, 35.3%, and 40.9%, respectively.
US Dollar Is near a 10-Week High, Could Upset Crude Oil Bulls
The US Dollar Index fell 0.1% to 93.55 on October 9, 2017. However, it rose almost 1.1% last week. The US dollar (UUP) is near a ten-week high.
Did UNG Outperform Natural Gas in the Week Ended October 6?
Between September 29 and October 6, 2017, the United States Natural Gas Fund ETF (UNG) fell 4.9%, while natural gas (BOIL) (GASX) November futures fell 4.8%.
Could Natural Gas Fall below the $2.8 Mark Next Week?
On October 5, 2017, the implied volatility of US natural gas active futures was at 33.1%, or 7.3% below the 15-day average.
Futures Spread: A Look at Natural Gas Supply–Demand Concerns
On October 4, 2017, natural gas (UNG) (GASL) November 2018 futures traded $0.08 above the November 2017 futures.
Gasoline Inventories Could Pressure Crude Oil Prices
The API estimates that US gasoline inventories rose by 4.19 MMbbls on September 22–29, 2017. The market expected a build by 1.08 MMbbls.
What Are Mining Stock Technical Indicators Telling Us?
On September 29, Alamos, First Majestic Silver, Franco-Nevada, and Pan American had call implied volatilities of 46.9%, 54.6%, 25.5%, and 34%, respectively.
How UNG Fared Compared to Natural Gas Last Week
On September 22–29, 2017, the United States Natural Gas Fund LP (UNG) rose 0.2%, while natural gas (BOIL) November futures fell 0.5%.
Could North Korea Be Affecting Precious Metal Prices?
North Korean tensions Like the US dollar, global tensions can be responsible for precious metal price fluctuations. North Korea has interpreted US president Donald Trump’s comments as a declaration of war, stating that Pyongyang has the right to take countermeasures, including shooting down US bombers outside of its airspace. The ongoing unrest in the Korean peninsula has led to a global […]
How Gold and Platinum Are Moving in Tandem
Like silver, platinum has industrial uses and has seen growing demand in China.
Understanding the Rising US Gasoline Inventories
The EIA estimated on September 27 that US gasoline inventories rose 1.1 MMbbls (million barrels) to 217.2 MMbbls from September 15–22, 2017.
Understanding the Oil Futures’ Forward Curve
On September 26, 2017, US crude oil November 2017 futures traded just $0.14 below the November 2018 futures.
Why Kurdish Regions Are Crucial for Iraq’s Crude Oil Exports
Iraq is the second-largest OPEC producer. The EIA (U.S. Energy Information Administration) estimates that Iraq’s crude oil production rose by 25,000 bpd (barrels per day) to 4,500,000 bpd in August 2017.
Why the Brent and WTI Crude Oil Spread Hit a 26-Month High
November WTI (West Texas Intermediate) crude oil (UWT)(DWT)(DBO) futures contracts fell 0.2% and were trading at $52.12 per barrel in electronic trading at 2:20 AM EST on September 26.
China’s Crude Oil Imports Hit a 2017 Low
China’s General Administration of Customs estimates that China’s crude oil imports fell by 180,000 bpd to 8 MMbpd in August 2017—compared to July 2017.
How Gold, Silver, and Mining Companies Performed on September 18
On September 18, gold fell 1.1% and closed at $1,306.90 per ounce. Of the precious metals, silver fell 3.1% and closed at $17.10 per ounce.
Hedge Funds Are Turning Bearish on US Crude Oil
Hedge funds reduced their net long positions in US crude oil futures and options by 12,094 contracts to 157,891 contracts on September 5–12, 2017.
Will the API’s Crude Oil Inventories Pressure Crude Oil Prices?
A market survey estimates that US crude oil inventories would have risen by 2.9 MMbbls (million barrels) on September 8–15, 2017.
Cushing Inventories: Bullish or Bearish for Crude Oil Prices?
A market survey estimates that Cushing crude oil inventories has risen between September 8 and September 15.
What’s Driving GGP’s Dividend Yield Upward
Revenue and earnings GGP (GGP), a retail REIT engaged in US real estate investment, saw its revenue fall 2% in 2016, compared with 5% in 2015. Growth was driven by management fees and other corporate revenue, and offset by minimum rent, tenant recoveries, and overage rent. Its operating expenses rose 4% in 2016 after a 7% […]
Welltower’s Dividend Yield Falls despite Higher Dividend
Revenue and earnings In this part, we’ll look at Welltower (HCN), a US healthcare REIT. Welltower’s revenue growth slowed from 15% in 2015 to 11% in 2016. The growth was driven by all of its segments, through rental income, resident fees and services, interest income, and other income. Its operating costs and other expenses (including interest expenses) […]
Stocks with High Dividend Yields in the Financial Sector
In this series, we’ll look at 11 S&P 500 companies offering high dividend yields.
Is Natural Gas a Good Short for Bears at $3?
On September 13, natural gas October futures closed at $3.058 per MMBtu (million British thermal units). The same day, natural gas prices rose 1.9%.
Are US Crude Oil Supply and Demand Tightening?
WTI (West Texas Intermediate) crude oil (XLE)(XOP)(USO) futures contracts for October delivery rose 2.2% to $49.3 per barrel on September 13.
A Correlation Study of Mining Stocks in September 2017
Among the four miners we’re looking at, Gold Fields has the highest correlation to gold on a YTD basis, while Sibanye Gold has the lowest correlation to gold.
US Crude Oil Production Hit a 5-Month Low
US crude oil production hit a five-month low due to slowing crude oil rigs and lower crude oil (XLE) (USO) (UCO) prices in the past few months.
What Could Drive TechnipFMC’s Dividend Yield
How TechnipFMC intends to maintain its yield FMC Technologies and Technip merged to become TechnipFMC (FTI) in 2017, an international provider of subsea, onshore, offshore, and surface projects. The synergy aims to combat the challenges of low oil prices and a challenging outlook through cost cutting and the enhancement of efficiency. The company recorded 51% revenue […]
Pre-Hurricane Harvey, US Crude Oil Demand Hit a Record High
US refinery crude oil demand The EIA (U.S. Energy Information Administration) estimates that US refinery crude oil demand rose by 264,000 bpd (barrels per day) to 17,725,000 bpd between August 18 and 25, 2017, reaching the highest level since 1982. Refinery demand rose 1.5% week-over-week and rose 1,110,000 bpd, or 6.6%, year-over-year. High refinery demand is […]
How North Korea Has Affected the Precious Metal Market
Precious metals have been buoyed by tension in North Korea. If North Korea does another missile test, it could prompt investors to move to haven assets such as gold, silver, Treasuries, and major currencies.
Natural Gas Could Regain the $3 Mark Next Week
In the next seven days, natural gas October futures could close between $2.85 and $3.11 per MMBtu (million British thermal units).
Have Oil Supply Glut Concerns Relaxed since Harvey?
On September 5, US crude oil October 2018 futures traded at a premium of $1.94 to October 2017 futures. On August 29, the premium was at $2.37.
Reading the Correlation Analysis of Mining Shares in August 2017
Yamana Gold has the highest correlation with gold, while Pan American Silver has the lowest correlation.
How Strongly Can North Korea Move the Precious Metals Market?
Gold futures for September expiration have risen ~3.9% over the past one-month period. Silver, platinum, and palladium have followed the same track as gold.
Natural Gas: Analyzing the Futures Spread
On August 30, 2017, natural gas October 2018 futures traded at a discount of ~$0.03 to October 2017 futures.
Why September Gasoline Futures Hit a 2-Year High
September gasoline futures contracts rose 4% and closed at $1.78 per gallon on August 29, 2017—the highest settlement in more than two years.
Harvey and API Crude Oil Inventories: The Impact on Crude Futures
US crude oil futures contracts for October delivery fell 0.3% to $46.44 per barrel on August 29, 2017.
Oil’s Futures Spread: Have Supply Glut Concerns Increased?
On August 29, 2017, US crude oil (USL) October 2018 futures traded at a premium of $2.37 to October 2017 futures.
Natural Gas Futures Spread: Analyzing Supply-Glut Concerns
On August 23, 2017, natural gas September 2018 futures traded at a discount of $0.03 to September 2017 futures.
Could US Gasoline Demand Fall in the Coming Months?
The EIA estimates that US gasoline demand will fall 275.0 Mbpd (thousand barrels per day) to 9.5 MMbpd (million barrels per day) August 4–11, 2017.
Will US Crude Oil Inventories Fall Again and Drive Oil Prices?
October WTI crude oil futures contracts rose 0.60% to $47.83 per barrel on August 22, 2017, and Brent crude oil futures contracts rose 0.40% to $51.87 per barrel.