Oil and Economy - Different scenarios

Standard Charted provides a matrix which envisages effect of oil on economy and different assets in all the scenarios possible

Source Standard Charrted, pragcap.com

Crude Oil Speculation

The non commercials net positions have crossed pre crisis levels. This might suggest that the speculation in the markets have reached a record high and even the slightest of bad news can bring the market sharply

IMF : Global Financial Stability Report

IMF GSFR

Commodity Rally and Fed

Correlation between Fed funding and commodity rally

Gold : Cause and Effects

this gold rally has left many perplexed. i believe gold is one of the most difficult products to trade as there are far too many variables that effect the gold markets. USFUNDS have come up with an interesting interactive chart which lists out few variables

ECB Rate Decision

The Last time ECB increased the rate in 2008, the world got into a catastrophic Depression. Lets hope this its not the same this time around.

But few things are still similar to the last time, like Equity markets near thier top and most importantly, Crude Oil making new heights.

Deja Vu ?

Surge in Commodity Prices : BoJ Review

BoJ reviews the current surge in commodity prices and the usual suspects are the global central banks, the financialization of commodity markets and supply/demand mechanics.

"The entry of new financial investors has paved the way for the “financialization of commodities”. Consequently, global commodity markets have become more sensitive to portfolio rebalancing by financial investors, which has made commodity markets more correlated with other asset markets, including major equity markets. Furthermore, globally accommodative monetary conditions have played an important role in the surge in commodity prices, both by stimulating physical demand for commodities and driving more investment flows into financialized commodity markets.”"


Read the complete report


rev11e02 -

Euro Zone Credit Ratings

When all was looking well , the Euro Zone credit rating has returned to haunt. Political crisis in Portugal is far from over and Greece is not doing enough

to reduce its debt