Archive for May, 2010

The price of oil down 18% in May

Monday, May 24th, 2010

Although summer usually tends to give lower oil and commodity prices, the month of May 2010 has been moving more than usual. Light crude oil have fallen 18% in May, and the question among oil traders now is if it will continue to sink or about to rebound?

Where are oil prices heading?

The commodity market this week begins fragmented and there is uncertainty as to which direction light crude oil will take the coming weeks.

Some oil analysts have a gloomy market outlook, believing increased pressure on demand for oil in the second half of 2010 will give even lower price for oil. Public debt is still a huge problem in Europe and Adam Sieminski, energy analyst at Deutsche Bank, believes that there is now talk of a W-shaped recovery.

More positive oil analysts believe that a temporary correction have taken place and now expect a recovery. They point out China’s demand for oil as an example, which have increased 12% this year.

Where do you think the price of oil are heading?

Gold reach record levels

Monday, May 17th, 2010

Investors stick to gold as an alternative to the euro. Gold denominated in euro rose to record levels, 994 EUR/ounce, after USD gained over 1 % against the Euro.

Equities drops while funds buy gold

Soc General estimate major exchange traded funds added 46 tons of gold last week. Funds turn into gold as it’s holding the its value and going higher, while equities (more…)

Gold prices at year high

Tuesday, May 11th, 2010

It seems to be time to trade commodities again. Gold prices were seen at the highest level this year, over $1219/ounce.

Why trade gold?

Gold remains as a favorite among many investors, since traders are scared of the situation in Greece and how other PIIGS (Portugal, Italy, Ireland, Greece and Spain) will (more…)

$141M loss in unauthorised commodity trading

Sunday, May 2nd, 2010

A commodity trader from Mississippi, USA, has been accused of running up over $141 million in losses, after he unauthorized bought and sold wheat futures.

Evan Brent Dooley worked for MF Global Inc. and was trading for clients out of office.

After lying to the brokerage company he worked for about his net worth, Evan conducted unauthorized trading until he could not cover the losses anymore.

The commodity trading was made through Chicago Board of Trade, the major trading floor in USA, where (more…)