Energy Markets

Seasonal Crude Oil Winter Blending Setup

The EPA has regulated the evaporative pressure of gasoline since 1989. Gasoline evaporation varies with temperature. The EPA regulations dictate a switch to winter blends beginning September 15th. The details of the rules and the enaction of the annual process delves deep into minutiae. I’ve attached a link at the end to a relatively recent article from Car and Driver,… Read more →

Record Silver Position Prepped for Final Test

A very rare occurrence is taking place in the silver market; silver processors and industrial users are more bullish on prices than the silver bugs. I specialize in reading the Commodity Futures Trading Commission’s (CFTC) weekly Commitment of Traders (COT) report. This report breaks down the positions being held by the various market participants. We focus on the battle between the commercial… Read more →

Unleaded Gas Bottoming into Seasonal Strength

Many financial markets are approaching illogical valuations of their products, and while no one knows how high the stock market will go or when it will turn. Fortunately, there are other investment opportunities that fit both logic and risk. Today, we’ll look at the unleaded gasoline market and the growing support that will push us into the spring driving season. Read more →

Trump Administration Paints Bleak Picture for Small Farms

There are two main points we intend to drive home. The first is that the incoming administration is pro-petroleum and steel. The second is that accurate price forecasting, and hedging by U.S. farmers is more critical now than ever. President Trump campaigned on the slogan “Make America great again.” The dialogue since his win has focused on which version of… Read more →

Natural Gas Unsupported at Elevated Levels

Natural gas, like the other energy markets, has ground its way higher since bottoming this spring as noted by the trend on the included chart. Much of the grind higher has been based on production cuts as prices fell below breakeven during the multi-year decline. The recent trend higher got a boost from Hurricane Matthew and its anticipated impact on… Read more →

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