Why I love commodity markets... “A hog herd boom amid a push to revive supplies of the nation’s favorite meat has driven up corn prices as demand
OPEC revenues lowest since 2002… EIA
Here is the EIA’s Today in Energy: “OPEC earned an estimated $595 billion in net oil export revenues in 2019, less than half of the estimated
Gains in CO2 emissions… Carpe Diem
Carpe Diem has some nice charts on CO2 emissions... Most of the gains are due to natural gas displacing coal in electricity production, and, recently,
Most Active Strikes… CME
From the Chicago Mercantile Exchange, here are the most active WTI options (LO) strikes for Friday’s action:
Negative commodity price…
Electricity prices often are negative in areas where supply can’t be stopped (hydro, nuclear, wind and, yes, oil) and demand wanes... Last night in my
Vol moves higher…
On a meltdown in price, one would expect high volume (over 100,000 is high these days), more puts than calls trading (check), higher implied vol
Oil vol… CME
The CME has a nice tool that charts the term structure of WTI implied vol... Front month December options are alive for the US election... Some may
Options update…
Not much unexpected in yesterday’s option activity as prices moved lower... Volume was up over 100,000 (up, but certainly not heavy), calls traded
Long term 1st nearby-2nd nearby WTI chart… CQG
I update the long term vol chart to show perspective and recently to point out how the model broke down went front month prices went below zero...







