Here’s where all the oil hedgers have gone…
Last week we wrote about John Kemp’s column pointing out that CFTC data suggests hedgers — those who are exposed to physical prices through their business operations —...
The subpriming of commodities
Is the new fad for securitising commodities creating dangerous parallels with the subprime crisis? It’s an observation we made the other day. But it turns out we’re...
You call that a credit bubble? This is a credit bubble!
The famous (implied) last words of Crocodile Edwards — a.k.a SocGen uber bear, Albert Edwards — this Thursday.Following in the foot steps of colleague Dylan Grice’s...
An AUD tale of correlation lost
The Australian dollar has veered away from its usual path. *Bad Aussie.*But there is a widespread belief it will have to eventually find its way back. How quickly it does so,...
Marginal oil production costs are heading towards $100/barrel
Bernstein’s energy analysts have looked at the upstream costs for the 50 biggest listed oil producers and found that — surprise, surprise — “the era of...
Is curve alpha being arbitraged away?
Investors looking for commodity exposure through fund offerings usually have one of two basic choices. They can opt for pure long strategies via funds which take positions in the...
Why China’s commodities demand is different
A lot of optimistic projections for China’s commodities demand look something like this:The premise is fairly straightfoward: you take the country’s current level of GDP per capita,...
Dark inventory, a volatility shock absorber
From oil to copper, something strange is going on with commodity inventories.Official stocks are rising across numerous commodities, but analysts and traders swear fundamentals remain tight,...
Where have all the oil hedgers gone?
An interesting chart from John Kemp at Reuters on Monday (click to enlarge):The chart breaks out which players are net short or long of Nymex and Ice light sweet oil at any particular time....
