The strike in Nigeria, if it does come to pass, will have a limited price impact and could very well follow June's pattern, where a sharp spike after the strike announcement was followed almost immediately by sizeable selling. |
There are still no signs of a downturn in global economic activity, suggesting that the fundamental backdrop for most commodities, including crude, remains favorable. We'll see if this week's U.S. numbers change any of that. |
There is some understandable nervousness about today's copper-stock increase. |
There seems little standing in the way of the bullish euphoria. |
This could, in effect, torpedo Russian and Chinese attempts to bring the Iranians around, and escalate the crisis once again. |
This is not to minimize the importance of the events swirling around us, but merely to suggest that they will now have to hit the markets with more urgency than they have in the past. |
We cannot rule out further gains later in the week, particularly if (DOE) inventory numbers surprise. |
We maintain our general view that these markets have to be given some respect given the fact that we still have sizeable outages going into Q4, |
We maintain our general view that these markets have to be given some respect given the fact that we still have sizeable outages going into Q4. |
We think that major moves ... should be held in check, as low volumes suggest that many people are either away, or uninterested in initiating new positions. |
While fundamentals are tight in several of the metals, they cannot justify current valuations. Markets are, instead, held hostage by the growing amount of investment and speculative money out there that is increasingly finding its way into commodities. |
Yesterday's sell-off was a shot across the bow, but we don't think the bulls will be heading for the hills any time soon. |
Yesterday's sell-off was a shot across the bow, but we don't think the bulls will be heading for the hills anytime soon. |