LONDON (Reuters) – Investors may increasingly look to market neutral and managed futures strategies for their commodity exposure if they want to avoid the higher positive correlations that commodities have shown with other asset classes since 2008.
Pension funds have steadily increased their exposure to commodities since 2005, in some cases allocating as much as 5 percent of their overall portfolio.
LONDON (Reuters) – Brent crude oil slipped more than $1 to around $111 a barrel on Friday after China’s factory output grew at its slowest pace in 28 months and as the market awaited tenders for sales from the IEA’s emergency oil stocks release.
By 7:07 a.m. EDT, ICE Brent crude futures were down $1.40 to $111.08 a barrel, off an intraday low of $110.67, and U.S. crude futures were down $1.06 at $94.36, after getting down to $94.18 a barrel.
LONDON, June 28 (Reuters) – Gasoline barge prices in
northwest Europe rose on Tuesday, following Brent crude oil
futures up as the market calculated the impact of the IEA’s
decision to release some 3.4 million barrels of gasoline in
“It looks like (it will have a) very limited impact,” said
one gasoline broker.
LONDON (Reuters) – Oil’s deep sell-off paused on Friday as the impact of a surprise announcement of an emergency stocks release faded.
By 0859 GMT Brent crude futures were 24 cents higher at $107.50, while U.S. crude futures recovered 87 cents to $91.89.
LONDON (Reuters) – Demand growth in China and the Middle East in the second half of 2011 will require OPEC to add 1.43 million barrels of oil per day (bpd) to balance the market, according to a Reuters poll.
OPEC’s monthly report published in early June said world demand for its oil would average 30.7 million bpd in the second half, much higher than the 28.97 million bpd the 12-member group produced in May.
LONDON (Reuters) – Strategic, focused M&A activity is set to rise as oil majors seek to plug gaps in their portfolios, said leading investment bankers and fund managers attending a Reuters summit this week.
National oil companies (NOCs) will also continue to hunt for resources in the OECD as they seek resource security, with Canadian and U.S. gas plays expected to be in the spotlight, said energy market participants at the Reuters Global Energy and Climate Summit.
LONDON (Reuters) – Oil rebounded above $114 on Thursday, supported by bargain hunting after Brent’s second-largest drop in two years on Wednesday, but the trend was seen downwards given rising risk aversion and dollar strength.
Brent crude for August, the front-month contract after July expired on Wednesday, was up $1.03 cents to $114.04 a barrel by 1104 GMT, whilst U.S. crude was up 49 cents to $95.30 a barrel at the same time.
LONDON (Reuters) – Oil rebounded on Thursday, with Brent pushing towards $115 after its second-largest drop in two years on Wednesday created buying opportunities and the IEA forecast higher demand and reduced OPEC spare capacity.
But traders and analysts said the overall trend remained downwards, given a stream of negative economic data coming out of the United States, the Greek sovereign debt crisis and rising risk aversion amongst investors, who returned to the safe haven of the U.S. dollar.
LONDON (Reuters) – The traditional business model of “big oil” — the major integrated oil company — is far from broken, said an RCM energy fund manager on Wednesday, despite the skepticism in some quarters about future growth prospects.
Some investors have shunned the majors because of their perceived difficulties in adding enough new assets to make a significant impact to the bottom line — and the share price.
LONDON (Reuters) – The risk of demand destruction in the United States is underestimated by the market, an Investec fund manager said on Wednesday, predicting a weaker U.S. summer driving season and a fall in the oil price as a result.
“Looking back over 30 years, when you see (U.S.) gasoline prices at over 9 percent of personal disposable income you see a demand reaction, and we are at 10.5 percent,” said Jonathan Waghorn, co-manager of the Investec Global Energy Fund.