Commodity Trends

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Is a Second OPEC Cut In The Cards?

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In November 2016 with great fanfare OPEC announced a cut in production in an effort to drive up prices in light of the massive global supply glut partially the result of U.S. shale oil flooding the market. This supply glut had put every Oil producing country in fiscal straits (since most of the governments derive a substantial portion of their revenues from oil). It also squeezed the private U.S. shale oil producers who had racked up significant debt prior to the oil price crash. In the months since we have published several articles pertaining to the price of oil. Initially OPEC’s production cut drove up oil prices but in Oil Prices High Enough to Spark Shale Rebound we showed that Shale production was capping the oil price gains.

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Gold Prices Inching Higher

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Several factors determine the U.S. price of gold. Inflation, market uncertainty (i.e. worry), the value of the Dollar compared to other currencies (a falling dollar increases the gold price), supply and demand. Market supply can come from three sources: mining, scrap (people selling jewelry to raise cash), and Central banks selling reserves. Demand can come from industrial and commercial sources and investment demand (i.e. people hedging against uncertainty or expecting a rise in gold prices). Recently, overall market and political uncertainty in the world is rising while the Dollar is falling.

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The Oil War Just Getting Started

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Let the battle begin. OPEC is trying to cut production and drive prices up while U.S. Shale Oil producers are seeing the increase in oil prices as an opportunity to get back in the game. More oil rigs are coming on line in the U.S. accompanied by increased drilling activity. BP’s 2017 Energy outlook is saying there is plenty of oil until at least 2050 but this includes an estimate that oil demand will slow in the coming years.

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Oil Prices Running Out Of Reasons To Rally?

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Oil prices faltered at the start of the second week of the year, as fears set in about a rapid rebound in U.S. shale production. For the better part of two months, optimism surrounding the OPEC deal has buoyed oil prices, but bullish sentiment from speculators are showing early signs of abating, raising the possibility that the oil rally is running out of steam.

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Is Fast Food Slowing Down? Five Growing Trends in Restaurants Today

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Americans’ taste preferences over the past few years have shifted away from fast food and towards healthier, but still casual, alternatives. Although McDonald’s, Burger King, and their ilk have seen a dramatic slowing in their sales, competitors like Panera Bread, Chipotle and in the west, Cafe Zupas have stolen market share by offering options with more natural ingredients and more vegetables.

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