The price of energy is on the rise. But it isn’t a normal commodity bull market. It’s always risky to say “this time is different” when dealing with financial markets. But this time IS different. At least, for energy commodities. Why is it different? Because we have never been in a state of the global
The title makes the crucial point: The Oil bull market is resting firmly on “fundamental” ground. While it has clear technical tailwinds in terms of commodity investment advisor trend signals, and while it is sailing on a sea of the central bank and fiscal stimulus, the main factor driving oil prices higher – and oil
The stock market is getting beaten up over recent days, but you wouldn’t know it if you had all your investment capital in the energy sector. Oil is up and the XLE energy ETF is near 52-week highs. XLE even rallied on Wednesday, when the rest of the market saw its largest decline in months.
The commodity space is picking up momentum as growth picks up in the developed world while stimulus and liquidity hang around with no signs of the punch bowl being taken away by policy makers any time soon. This is the plan. Ask the Fed. The idea is to drive a “sticky” inflationary impulse into the
For a group to get hot in a bull market trend, it’s not enough to simply have a good fundamental case. “Hot” means retail money flowing in, which equals multiple expansion and a crowd of hungry speculators looking for the next breakout in the group. For that, you need a compelling “story”. Right now, small-cap
Goldman Sachs just came out with an $80 price target on WTI Crude Oil. This note from National Bank helps to explain things: “So, while the oil field service narrative has generally been muted under the context of upstream discipline, the Majors are signaling the initial innings of a demand-led recovery; we suggest that global
The oil market continues to be resilient. Prices are holding above the key $60 level in the US WTI Crude market, which reflects continued fears about the future potential of a shortage after economic activity, particularly travel, picks up as major OECD economies “reopen” following a sufficient distribution of effective Covid-19 vaccines. The rush to