Permian Basin Operators Set to Soar in 2025

Affordable Futures

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Retail investors can use new smaller futures contracts to hedge their portfolio bets  Hedge fund managers and other big investors have been using futures to reduce risk for years, but until recently the size of these products has prevented smaller investors from taking advantage of them.  Not anymore. Now, futures have become available to even … Continued

How Not to Start an Energy Revolution

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Lack of capital is preventing the petroleum industry from satisfying the public’s desire for abundant oil and natural gas President Joe Biden’s administration and the cable news talking heads blame $115 per barrel of oil and $5 a gallon of gas on a panoply of causes that include the reopening of the economy, the Russian … Continued

Mean Reversion

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Respecting the tendency of some securities prices to return to their long-term mean is an essential trading strategy. While hype can inflate markets like hot air in a balloon, prices tend to return to Earth at a moment that’s notoriously difficult to forecast. Conversely, underpriced stocks often regain the value they’ve lost. These are reasons … Continued

Slippery Oil Prices

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Predicting the future price of black gold isn’t easy  The economy has apparently withstood this year’s 45% rise in the price of oil, but monetary policymakers remain concerned about the commodity’s future. Higher oil prices can dampen demand in general, as consumers and businesses spend a larger portion of their budgets on oil-related products and … Continued

Less Than Zero

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All of the attention in markets was focused on crude oil the week of April 20, when on that Monday and Tuesday, the price of West Texas Intermediate (WTI) crude oil fell to a new all-time low, below zero, and to negative $40.32 per barrel in the expiring May futures contract. Any trader who had … Continued

Leg Up on Futures Calendar Spreading

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Learn the idiosyncrasies of intramarket spreads—trades where an investor simultaneously buys and sells the same futures contract in different expiration months Professional traders seeking commodity exposure often make futures their preferred investment vehicle because of their capital efficiency, exactness in tracking an underlying spot market and deep liquidity. But unlocking the benefits of futures can … Continued

What May Drive Forward Gold Prices? Look to Oil for Clues

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The financial world learned for the first time this week that the value of a crude oil futures contract can trade in negative territory. One can say without reservation that particular lesson was learned the hard way. The complication, as most are already aware, is that global lockdowns associated with the coronavirus outbreak produced a … Continued