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Showing posts with label commodities. Show all posts

April 21, 2020

Crude: this is what happens if you cannot take delivery

Oil traders that still have contracts are selling at whatever price they can get because they do not (all) have the ability to take physical delivery.

Storage and refiners are not buying. The $1/barrel is a trading dynamic when there are many sellers and limited buyers
— (((Alex Gilbert))) (@gilbeaq) April 20, 2020

A simple explanation on how crude became negative

Explanation of negative #crudeoil price..

Sari raat ki neend uda di aaj crude moves ne...

Who is still awaking...??? pic.twitter.com/a2jX9cwy5d
— RM (@ravi__mehata88) April 20, 2020

Crude oil futures trade at negative price for first time

BREAKING: WTI crude oil futures trade at negative price for first time https://t.co/pOSyH6AVtP pic.twitter.com/XsoH1jG8WH
— Bloomberg (@business) April 20, 2020

This breaks the standard Black - Scholes model into pieces. The BS model assumes that the price of a commodity can never turn negative. At the most it can become zero.

This is of course BS, because there are no physical world rules. https://t.co/9zquHkePVB
— V. Anand | வெ. ஆனந்த் (@iam_anandv) April 20, 2020

And Jim Rogers gets proven wrong

March 9, 2020

CRUDE down 30% this year but no benefit to Indian end customers

Will indian govt. Slash petrol/diesel prices by 30% with CRUDEOIL move??

Or we have to just work hard to add value in govt. Pocket??

Have seen crude at 80$ odd 2 years back, petrol were trading at 80 INR. Now crude at 30$ odd and petrol still at 70 INR.#RamBharoseIndia
— Pathik (@Pathik_Trader) March 9, 2020

February 29, 2020

September 1, 2018

- someone asked if a rally has started
- I follow USD charts
- as of now, trend is down
- but we have a big bar around the 27th
- so this can change things
- best thing is to wait for confirmation
- I will be bullish above 1240

December 12, 2017

CRUDE breakout can spell more problems for India

Specially if you consider that benefits of correction were not passed on thanks to increase in excise duties.

October 5, 2016

GOLD breaks support

Big crack in GOLD yesterday as it breaks support.

Now this support 1310 will offer resistance.

July 19, 2016

MCX SILVER chart

- trend is up
- support 45300 and 40700

MCX GOLD chart

Trend is up with support around 29800.

Minor support around 31100 has been broken.

June 26, 2016

GOLD and SILVER seeing selloff at higher levels

GOLD

SILVER

May 10, 2016

The World's Most Extreme Speculative Mania Unravels in China

From the Dutch tulip craze of 1637 to America’s dot-com bubble at the turn of the century, history is littered with speculative frenzies that ended badly for investors.

But rarely has a mania escalated so rapidly, and spurred such fevered trading, as the great China commodities boom of 2016. Over the span of just two wild months, daily turnover on the nation’s futures markets has jumped by the equivalent of $183 billion, outpacing the headiest days of last year’s Chinese stock bubble and making volumes on the Nasdaq exchange in 2000 look tame.