Growthiness Hope Fades: Copper, Crude Clubbed To One-Week Lows

If everything is so awesome in the world, why are Copper (who appears only to be an Economics PhD when it is rising in price) and Oil prices tumbling (despite a lower dollar)?

It seems yesterday's algo panic bid after record inventory data has been erased…

As Bloomberg also points out, Spreads still show glut:

The shortest-term oil prices show that an oversupply endures. The nearest Brent and West Texas Intermediate contracts remain in a structure known as contango, which typically occurs when there is too much supply, depressing short-term prices. While the market remains in contango, it is costly for traders to hold on to oil contracts from one month to the next, diminishing the profits of those speculatively betting on rallies. JBC sees no global reduction so far in inventories, although it’s still just six weeks since OPEC and its allies started to implement their cuts.

And don't forget, spec positioning is all one way…

And all that China hype, supply anxiety, has collapsed in copper…

 

Maybe Copper and Crude have lost their economic vision?


via Read More Here..

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s