Monthly Archives: February 2017

Home (no title) 2017 February
West Texas Intermediate crude oil for April delivery CLJ7,

West Texas Intermediate crude oil price raised for April 2017

West Texas Intermediate Crude Oil Price

 

Oil futures remained higher Thursday after spiking to a session high following a smaller-than-expected rise in weekly U.S. crude inventories.

 

West Texas Intermediate crude oil for April delivery CLJ7, +2.16% on the New York Mercantile Exchange was up 97 cents, or 1.8%, at $54.56 a barrel after trading as high as $54.94 after the Energy Information Administration said U.S. crude supplies rose 600,000 barrels in the week ended Feb. 17.

 

Analysts surveyed by The Wall Street Journal had forecast, on average, a 3.4 million barrel rise. Data from the American Petroleum Institute, an industry trade group, late Wednesday had shown an 884,000-barrel.

 

You may contact us anytime if you need professional support or have any questions.
1-858-652-1253  | [email protected] 


Oil prices fell after large rise in U.S. crude inventories

Oil prices fell on Wednesday after a government report showed a large rise in U.S. crude inventories.

It signaling ample supply even as OPEC achieves record compliance with its output cut accord.

 

 

U.S. inventories rose by a larger-than-expected 9.5 million barrels last week to a total of 518.1 million barrels in the week through Feb. 10, the Energy Information Administration’s (EIA) reported.

 

Analysts expect U.S. crude inventories to have risen by 3.5 million barrels, for the sixth straight week of gains. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 702,000 barrels, EIA said. Gasoline stocks rose by 2.8 million.

Energy Information Administration

The Energy Information Administration sunk oil markets deeper into despair reporting a build of 13.8 million barrels for commercial crude oil inventories in the U.S. Total commercial inventories are at 508.6 million barrels, above the upper limit for the season.

A day earlier, the American Petroleum Institute reported the second-largest weekly inventory build ever in the history of records, at 14.227 million barrels, versus expectations of a 2.38-million-barrel increase.

Last week, both EIA and API reported substantial builds in inventories, with the EIA figure at 6.5 million barrels for the week to January 27, exceeding API’s. 

Volatility Trading

 

Besides some individual standouts in the Multi- Strategy and Discretionary categories, the Volatility trading sector were the rock stars of 2016. This space is growing each year, and becoming more diverse in the process.

 

 

Where we used to see a steady diet of vanilla option selling here a space has added new strategies incorporating VIX futures, with what once was a purely short volatility space rapidly becoming more and more of a volatility trading space, able to profit from either increases or decreases in volatility.

 

For more on how this sort of trading works (buying and selling the fear gauge futures), we outline it all here and here. The short version is that each Volatility manager tends to approach the VIX from a market structure standpoint – trying to capitalize on its unique tendencies of being a “quadrative” of sorts, (a derivative of an index of a derivative of an index) where arbitrage opportunities can exist when one of the four components of that “quadrative’ doesn’t keep pace with the other legs.

Open