Total option volume including Brent and WTI was heavy yesterday with 387,284 trading, 232,867 calls and 154,417 puts… 18,012 June 95 calls and 19,705
Be wary of headlines like this one…
From Alex Longley, Bloomberg: Oil Market Runs Out of Bears in Surge to the Brink of
Unplanned outages, OPEC… EIA
From the EIA’s excellent “This Week in Petroleum”, here… ”We estimate approximately 0.4 million barrels per day (b/d) of crude oil production went
Options update…
Javier Blas, Bloomberg, has a nice piece on options activity in oil markets, here… I do disagree with this: ”If we break above $90 a barrel,
What a World… Morgan Housel
From the always excellent Morgan Housel: https://www.collaborativefund.com/blog/what-a-world/ BlackRock CEO Larry Fink once told a story about
Backwardation in oil markets… Bloomberg
Paul Wallace, Bloomberg, writes about tightness in oil markets causing backwardation, here… “Oil posted a fourth-straight gain last week, its
Options update…
A monster trade… 25,000 Dec22 WTI $114/$115 what we hear were call spreads traded yesterday, settling at $.06… What is interesting is that without
German utilities, margin calls… WSJ
Hedging 101… A good example of the flow risk to hedging… A forward or futures hedge creates a potential cash flow mismatch... For producers, a rise in
Top 10 Best Performing Commodities… Oilprice.com
Alex Kimani, Oilprice.com, writes about the top 10 commodities in 2021, including an EV metals chart…