Energy Hedge Fund Center

A plunge in global commodity prices is tilting the balance in favour of Federal Reserve Chairman Ben S Bernanke and colleagues who may seek further action to boost growth as the US labour market falters and risks from Europe rise. The Standard & Poor’s GSCI Total Return Index of 24 commodities has fallen 16% since ... Read More

Commodities have been sinking like stones since late February, an unusual divergence from the rallying stock markets. This relentless weakness has wreaked havoc on commodities sentiment, leading traders to abandon commodities stocks. As we all try to make sense of this surreal bloodbath, one catalyst keeps coming up. Western perceptions of the Chinese economy have ... Read More

After a lackluster 2011, 2012 is expected to be good for commodity investors. This was forecasted by Barclays Capital in its annual survey of institutional investors on February 27. The study found that commodities were valued as a way to diversify risk and generate positive returns in a time of economic uncertainty. The study found ... Read More

Money managers increased their net long positions in brent crude and gasoil futures to new record levels in the week ending March 27. The net long brent crude position rose by 8 percent and for the first time ever breached 150 million barrels.

We have been witnessing a rotation from risk off treasuries and dollars into risk on oil, copper, US and European equities. Gold and silver may be overlooked for riskier assets which may have been more undervalued. This may be a short term phenomenon as gold and silver will catch up as they are the ultimate ... Read More

Oil prices are soaring. Does this mean Big Oil will earn more money? It might seem counter-intuitive, but I say no. Extracting oil is getting more expensive, weighing on EBITDA and the EBIT margin.

Investment flows into commodities turned positive in January after heavy withdrawals the previous month, boosting hopes that money entering the sector will rise this year from the weakest levels in nearly a decade in 2011, Barclays Capital said. Commodities saw $7.7 billion of net divestment in December, Barclays estimated, after many funds suffered heavy losses ... Read More

Commodities markets jumped higher as euro-zone finance ministers approved a second bailout for Greece. Copper, gold and other metals posted gains, while crude oil surged to a nine-month high after European leaders approved a €130 billion ($172 billion) bailout that would allow Greece to avoid defaulting on debt payments due next month. The deal, which ... Read More

BP is facing a large potential fine from the US government over the Deepwater Horizon spill. An astute trader could reduce the risk of a larger-than-expected settlement with a protective put, helping guard against downside risk.

Hedge funds increased bets on rising commodity prices to the highest since September on mounting confidence that growth in the U.S. will strengthen demand. Money managers boosted their combined net-long positions across 18 U.S. futures and options by 13 percent to 929,199 contracts in the week ended Feb. 7, Commodity Futures Trading Commission data show………………………………………..Article ... Read More