Commodities are more volatile than most assets. The supply-demand dynamics of commodities are continuously changing, and sometimes very rapidly. Different commodities will have different levels of volatility, of course. Some commodities are extremely volatile. For example, natural gas has had a volatility of almost 45% in some periods, and gold has experienced movements of 20-30% per year lately. Crude oil prices fell some 50% in 2015, as a global supply glut was met with weakening demand, particularly from China. Gold is actually on the less-volatile side of the spectrum for commodities. Silver, Nickel, and crude oil tend to be on the upper end of the spectrum along with exotic metals such as platinum and palladium. Continue reading...
Unearth the secrets of the crude oil industry! From industry giants like Exxon Mobil to the intricate dance of geopolitics and technology, discover the vast potential and challenges of the energy sector. Ready to fuel your investment journey in the world of black gold? Continue reading...
When commodity prices rise, there is an impact on how people travel, how goods are shipped, and how people formulate their budgets. In comparing the rise of natural gas vs. oil prices, both have an impact on the consumer. For instance, when home heating prices climb, people have to decide whether or not they can afford to turn up their thermostats. Furthermore, when various goods have become more expensive because their components also cost more, people have to make difficult choices on what to buy. The price of oil affects individual spending choices as well as the budgets of corporations and governments. Continue reading...
The commodity-product spread is the difference between the price of a commodity and the price of the products at the next level of consumption which is made from the commodity. In the oil industry, this is known as the crack spread, in the soybean industry, it is known as the crush spread. Some pre-packaged long/short futures strategies that trade on this spread are offered on futures exchanges. The commodity-products spread is the difference in prices between a raw material and a product made from it, such as raw crude and gasoline. This difference gives a rough estimate of production costs and profit margin. Continue reading...
The oil marketing sector, a critical component of the energy industry, plays a pivotal role in refining and distributing petroleum products. This article delves into the leading companies within this domain, offering insights for investors eyeing opportunities in this segment. Continue reading...
The oil and gas exploration and production sector is a critical component of the global energy market. This article provides an in-depth analysis of notable companies in this sector, highlighting their operations, market capitalizations, and the overarching themes that impact their performance. Continue reading...
Commodities can be acquired through brokerage services that can access the commodities markets, or you can buy the stocks of companies that bring commodities to market. Investors can also gain exposure to commodities through mutual funds and ETFs that focus on them. There are a few ways to invest in commodities. One simple way is to purchase the stock of companies that produce commodities. You can also invest through futures contracts, which are agreements to buy a certain amount of a commodity at a certain price at some point in the future; this is the primary way that commodities are traded. They can also trade at spot, which means at the current price, or through the use of other derivative instruments, such as options on futures contracts. Continue reading...
There are some things to keep in mind when investing in commodities and their ETFs. Most commodities trading revolves around who owns a hard asset and when. ETFs occupy a space in the commodities world that is somewhat unique. An ETF such as the Crude Oil Index does not physically buy millions of barrels of oil and store them. It buys financial instruments which theoretically should reflect the price of oil. Continue reading...
In the dynamic landscape of the oil industry, the Oil Refining/Marketing segment has emerged as a critical player, especially in the context of fluctuating oil prices. This article delves into the most notable companies in this sector, highlighting their market positions, strategies, and potential for growth. These companies, renowned for their roles in refining crude oil into various petroleum products and marketing them, are the linchpins of the downstream oil and gas business. Continue reading...
Unpack a week of dynamic financial shifts from June 10-14! Discover how geopolitical events and Fed decisions stirred the markets, influencing stocks, bonds, and cryptocurrencies. Get insights into sector-specific winners and losers across global markets Continue reading...
Discover the power of commodities in your investment portfolio! Learn how they act as a hedge against inflation and provide diversification. Explore the world of hard and soft commodities, and find out how to invest in them. Maximize your portfolio potential with this essential guide. #Investing #Commodities #PortfolioDiversification Continue reading...
Commodity indexes are also called commodity price indexes, and they are informational services which reflect the price action in a designated commodity or basket of commodities. Indexes are often tracked by mutual funds or ETFs, and these can be confused with the actual index. Indexes are computed and published by market research firms. They can serve as benchmarks against which the performance of a specific asset or an investment portfolio can be compared, or they can serve as the model that index funds seek to emulate. Continue reading...
The U.S. Dollar (USD) isn't just a currency; it's a symbol of global economic dominance. As the official currency of the United States, the USD has evolved over centuries to become the world's primary reserve currency, influencing global trade, forex markets, and international reserves. From its early days anchored to the gold standard to its modern-day status as a free-floating fiat currency, the journey of the USD is a testament to the economic prowess of the USA. Its stability, global acceptance, and role in oil trade (petrodollars) further amplify its significance. Moreover, with the advent of digital currencies, the USD continues to adapt, as seen with the USDCoin. As we navigate the intricate world of finance, the USD stands tall as a beacon of trust, stability, and strength, shaping the financial destinies of nations and individuals alike. Dive in to unravel the story of the world's most influential currency. Continue reading...
Commodity paper is the contract for a loan which is secured by collateral in the form of a commodity held in a warehouse or in transit. This is basically a form of warehouse financing, where the inventory in storage is verified and the changing level of inventory insures a larger or smaller line of credit from the lender. In this arrangement, however, there is one agreed-upon loan and collateral amount. Continue reading...
Income for an area or country it totaled up and divided by the total population of the area to give us the Income Per Capita statistic. Per capita is Latin for “by head,” and income per capita takes every man, woman, and child into account. Income per capita is a statistic that divides the total amount of income reported in an area by the total population of the area. This shows us how much income, as a resource, is available on average to each person in the area. Continue reading...
Futures markets are the formal exchanges on which futures contracts are bought and sold for commodities, financial products, and interest rates. Futures markets constitute a large part of the financial system and are an attempt by participants to hedge against some of the volatility and risks to which they might be exposed as time passes, especially where contracts await resolution or payment. Futures contracts might be created for financial instruments, commodities, and other derivative interests. The Chicago Mercantile Exchange, the Intercontinental Exchange (ICE) and the Eurex Exchange are large parts of the international network of futures markets and clearing houses. Continue reading...
Dive into the world of futures in the stock market. Explore the significance of futures contracts, their types, and the balance between risk and reward. Learn the history and the role of traders in shaping the futures landscape. Continue reading...
Unlock the world of commodities trading! Explore its history, market dynamics, and investment strategies. Gain insights into metals, energy, livestock, agriculture, and discover how to invest through futures, stocks, ETFs, or mutual funds. Diversify and seize opportunities in this historic market. #CommoditiesTrading Continue reading...
Explore how global markets rallied during the week of September 23-27, with small-cap stocks leading the charge and volatility indices dropping. Discover key market drivers, sector performances, and international trends that shaped investor confidence. Read the full market analysis now! Continue reading...
November markets faced volatility as tech stocks plunged, small-caps tumbled, and energy ETFs surged. Explore top-performing sectors, global trends, and the tools driving smarter trading decisions. Continue reading...