Crude Oil: Iran Says They Are Willing To Talk

Crude oil falls as Iran talks to talk of peace Words and actions are a different story Three reasons to buy dips in crude oil On September 14, the attack on Saudi oilfields that temporarily knocked out 50% of output amounting to 6% of world’s supplies caused a price spike in both WTI and Brent crude oil futures. However, the growth in US production likely tempered the price action on the upside. Technological advances and regulatory reforms have made the US energy independent and a net exporter of crude oil…

Should Investors Buy This Dip in Oil?

The temperature rises in the Middle East Crude rallies and corrects Buying dips because Iran is not going away anytime soon The fundamentals of the crude oil market have changed dramatically over recent years. The US was dependent on the Middle East for the energy commodity for decades. The growth of the US oil industry on the back of technological advances and regulatory reforms caused the output to rise above the levels from Saudi Arabia and Russia. Not only is the US the world’s leading producer with around 12.5 million…

Natural Gas: Why the Downside Risk is Limited

In November 2018, the price of natural gas rose to the highest price since 2014 when it traded at $4.929 per MMBtu. The price of natural gas rose at the start of the peak season of demand during the winter months when inventories fall. The amount of natural gas in storage around the US fell to its lowest level in years last November, which helped propel the price to a multiyear high. After rising to the highest price in years in late 2018, the price fell through technical support and…

Why Investors Should Be Bullish on Gold

The Fed cuts rates as expected Rates continue to fall around the world Lower rates and trade concerns are bullish for gold We recently heard from the European Central Bank in what was President Mario Draghi’s final meeting as the head of the ECB. Ms. Christine Lagarde, the former managing director of the IMF, will slide into his seat as the head of the monetary authority in October. At its September meeting, the ECB cut the short-term deposit rate by ten basis points. The central bank told the market that…

Is Now the Time To Buy Gold?

Gold dips below $1500 The bearish calls rise- The ECB provides a reason to buy the dip In a bull market, it is crucial for bearish to fuel the trajectory of prices Gravity hit the gold market over recent sessions. After rising to a high $1566.20 on the COMEX December futures contract on September 4, the price pulled back to the $1500 level. December gold futures closed on Friday, September 13 at $1507 per ounce. After the rally from under $1300 in May to the highest price since 2013, a…