Piercing The Sky: where will we see black gold by Christmas?

Knock Knock? Is it already the sky, or just a ceiling? Either way, oil has risen dramatically – how far can it go?

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Letters, conferences and more on hedge funds in the second quarter of 2021

Why there is no Bitcoin ETF in the United States yet

Digital payment systemShould you invest in cryptocurrencies? As with any investment, it depends on many factors. At the Morningstar Investment Conference Thursday, Matthew Hougan of Bitwise, Tyrone Ross, Jr. of Onramp Invest and Annemarie Tierney of Liquid Advisors joined Morningstar’s Ben Johnson to discuss portfolio allocations to cryptocurrencies. Letters, conferences and conferences on hedge funds in the second quarter of 2021

Fundamental updates

Crude closed high on Thursday on optimism about demand as well as still tight supply. Indeed, this increase is driven by a general market sentiment relatively favorable to the macroeconomic situation and the conviction that supply should remain tight until the end of 2021.

WTI crude oil futures were up 1.5%, more than $ 1 from Wednesday’s close. Like Wall Street, the oil market has also been sensitive to the increasingly reassuring tone of messages from China about the plight of property developer Evergrande, which is on the brink of default. In addition, the acceleration of air travel caused by the lifting of restrictions on entry into the United States by Washington could also stimulate demand for kerosene. And finally, while natural gas prices are suspended from the ceiling, we could see a shift in demand from gas to oil, which would obviously stimulate the rally from barrel to Q4!

Geopolitical scene

On Thursday evening, Lebanese Hezbollah announced the arrival of a new shipment of oil from Iran to the Syrian port of Banians – the Al Mana party TV channel reported this morning on its Telegram account. Hezbollah maintains that the shipments are intended to help the Lebanese people, who are suffering from severe fuel shortages due to the financial crisis the country has been experiencing for two years.

In contrast, Lebanese Prime Minister Najib Mimait, expected Friday at the Elysee Palace (Paris), said the shipments from Iran violated the sovereignty of Lebanon, with Syria and Iran both subject to US sanctions. .

WTI crude oil

Figure 1 – WTI Crude Oil Futures (CLX21) (November contract, daily chart)

Natural gas

Figure 2 – Henry Hub Natural Gas (GNV21) futures contracts (October contract, daily chart, logarithmic scale)

As black gold now attempts to break through all-time highs, it will be interesting to see how oil demand progresses at these levels, as well as whether OPEC + faces further pressure to intervene on the supply side. in the coming weeks. .

And what do you think? We would love to hear from you! What do you think of the level that WTI crude could reach before the end of the year? Please let us know!

Have a nice week end!

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Sebastien bischeri

Oil and gas trading strategist


The above information represents only analyzes and opinions of Sebastien Bischeri and the associates of Sunshine Profits. As such, it may prove to be incorrect and be subject to change without notice. At the time of writing, we base our opinions and analysis on facts and data from respective trials and their authors. Although trained on the basis of careful research and sources deemed accurate, Sébastien Bischeri and his associates cannot guarantee the accuracy and completeness of the data reported. The opinions published above do not recommend or offer any securities transaction. Mr. Bischeri is not a registered securities advisor. By reading Sébastien Bischeri’s reports, you fully agree that he will not be held responsible for any decisions you make regarding the information provided in these reports. Investing, trading and speculating in any financial market can involve a high risk of loss. Sébastien Bischeri, employees, affiliates of Sunshine Profits as well as their family members may have a short or long position in any security, including those mentioned in any of the reports or trials, and may make purchases and / or additional sales of these titles without notice.

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