Commodity Research Group (CRG) is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct hedging strategies.
In this podcast, oil market experts Andrew Lebow and Jim Colburn discuss key fundamental forces driving oil prices in both the futures and options markets.
About Your Hosts
Andrew Lebow has been involved in the energy derivative area since 1980. He began his career with Shearson Lehman Brothers where he worked in the initial formulation and marketing of the NYMEX WTI crude contract in 1983 as well as the NYMEX gasoline contract in 1985.
Mr. Lebow has appeared before the State Government of Alaska as well as the State Department of Defense to discuss hedging techniques. Mr. Lebow is also well known as a market analyst and is quoted frequently in the financial press. He has appeared on television on CNBC, NBC, CNN, CBS, and PBS. Mr. Lebow holds a BA from Lafayette College and an MBA from the Kellogg School of Management at Northwestern University
Jim Colburn is a futures and options professional with 30 years of wide ranging experience in commodity markets. For much of his career, at Man Financial (1989-2011) and Jefferies LLC (2012-2013), Mr. Colburn worked with major integrated oil companies, hedge funds, pension funds and other entities to develop market hedging and trading strategies.
He has conducted trading, hedging and risk management workshops in energy markets worldwide.
Mr. Colburn is a published author on options trading, hedging, market making and risk management. In 1986, while at the New York Mercantile Exchange, Mr. Colburn helped develop new markets in energy option contracts by educating the oil industry, banks, floor traders and brokers, worldwide.
This is Jim Colburn of Commodity Research Group. I’m here with Andy Lebow also of Commodity Research Group and we’re here with another edition of energy markets.
To learn more about us, you can check out our website commodity research group.com where we post our podcasts and blog. We would like to thank our friends at EKT Interactive Oil and Gas Training for hosting this podcast. Check out their newsletters, podcasts, and learning modules at www.ektinteractive.com
This podcast should be construed as market commentary; merely observing economic, political and market conditions and is not intended to refer to or endorse any particular trading system, strategy or recommendation. We’re not responsible for trading decisions taken by anyone, especially those not intended to listen. Information is not guaranteed to be correct. This is not an offer to buy or sell any derivative. Today is May 16th.
Andy Lebow, I usually say it’s been a month and a lot’s been going on in the oil markets and I really mean it this time.
Oh my goodness, everything’s going on, Jim.
We have Iranian sanctions, heightened tensions in the Middle East and contaminated crude coming out of Russia. The EIA, OPEC and IEA have come out with their monthly supply demand estimates. Where do you want to start?
And you forgot the China/US trade spat thrown in there. There’s a lot of, well, first of all, I want to start with just my email address if you want to, if you want more, it’s firstname.lastname@example.org. Now let’s get to the good stuff. You know, with all you mentioned Jim and everything that’s flying around in the oil markets, I thought it might be good to just start with some numbers, like you and I like to.
Uh, and so our listeners can really get a better feel for what’s happening in the market besides the headline. And, you know, we always like to focus on OPEC as they, for all the reports of their demise there’s still 30% of world production and obviously are a key factor, OPEC and the OPEC plus.
I think we, yeah, I think we covered a lot. You know, there’s still, obviously there’s like, the second half of the year is going to be a doozy, I think.
I think we’ve been pretty constructive towards this market. And you know, talk with drones flying and ships being attacked, you know, what would this have been like years ago? You would’ve gone crazy.
I remember the First Intifada where, where oil market valves blew up, people got really nervous and, and all of a sudden people realized there was no oil in Israel. But the markets reacted to it. The markets reacted. And now we have some actual attacks going on and, you know, market’s reacting.
We hope to hear from you and we’ll see you next month.