Silver as an investment

Category Archives: Contango

“Oil God” Andy Hall Blows Up, Closes Main Astenbeck Hedge Fund

Back in December 2014, the start of the worst oil rout since the financial crisis claimed its first victim when 113 year old Phibro, then owned by Occidental Petroleum after its sale by Citigroup, would liquidate in the US after it failed to buy a buyer. Phibro, of course, was made famous or perhaps infamous […]

“When The Facts Change”- Oil’s Biggest Cheerleader Capitulates: Andy Hall’s Full Bearish Letter

After years of being oil’s biggest cheerleader, “oil god” Andy Hall, who starting with the OPEC Thanksgiving massacre in 2014 has had several abysmal years, in the process losing the bulk of his AUM, finally threw in the towel last week when in a July 3 letter to investors, he admitted that “the facts have changed” […]

Is ‘Oil God’ Andy Hall The Latest Victim Of “Fake News”?

Raymond James' J. Marshall Adkins invoked one of President Trump's favorite phrases to explain oil's plunge, and to excuse his bullish bias (that crude can rise to as much as $65 a barrel). As Bloomberg notes, conventional wisdom holds that resilient U.S. shale drilling, underwhelming progress towards OPEC’s goal in slimming global oil inventories, and […]

Forget Draghi, Crude Matters

Authored by Jeffrey Snider via Alhambra Investment Partners, Despite Mario Draghi’s supposedly misinterpreted comments earlier this week, there are global indications that the best of this round has already been reached. Policymakers are always going to claim things are improving, that much is given. But there is tremendous difference between that and what has occurred, […]

Why The Relationship Between OPEC And Hedge Funds Is On The Verge Of Falling Apart

Following years of acrimony between OPEC and the hedge fund community, which the cartel dismissed simply as “speculators”, things suddenly changed in 2016 when the two groups got so close, there were outright reports of collusion between the two on various occasions. We documented this last month in “Why OPEC Is Colluding With Hedge Funds.” […]

Oil Speculators Have Never Been This Long

Despite soaring rig counts, surging US shale production, and increasing doubts over OPEC/NOPEC cuts being sustained (albeit with Saudi jawboning)… Oil speculators have decided to add to their long positions in the last week, pushing the net position in futures to a new record high – above the 2014 peak from which crude collapsed.   […]

Raoul Pal Warns The Day Of Reckoning Looms For VIX Shorts: “Reminds Me Of Portfolio Insurance In 1987”

ubmitted by Patrick Ceresna via Macrovoices.com,   In a podcast interview on MacroVoices, Macro Guru Raoul Pal makes some comments on some of the biggest imbalances in the markets today.  He compares the VIX contango trade to the portfolio insurance problem that was blamed for the 1987 crash… they don't realize the rate of change […]

U.S. Prepares To Sell Off Its Oil Reserves

Submitted by Nick Cunningham via OilPrice.com, The U.S. is beginning to wind down one of the core energy security policies of the past half century as the boom in domestic drilling eases concerns about supply. (Click to enlarge)   The U.S. Department of Energy could begin to sell off some of its strategic petroleum reserve […]

Futures Unchanged In Thin Pre-Holiday Tape; Italian Bank Bailout Lifts European Shares

European stocks halted two days of declines, with the Stoxx 600 fractionally in the green and Italy’s bonds climbing after Monte Paschi requested a bailout and Italy pledged to provide support for its other ailing lenders. S&P futures were little changed among extremely thin volumes while Chinese stocks dropped amid concerns on higher borrowing costs. […]

The Fallacy Of Central Planning (Exposed By South Park’s Underpants Gnomes)

Submitted by Jeffrey Snider via Alhambra Investment Partners, In the seventeenth episode of the second season of the Comedy Central cartoon South Park, the show introduces one of its longest lasting memes that has survived despite the first airing being nearly twenty years ago, and all the vulgarity and seemingly gratuitous violence in between. Titled […]