WTI SIGNAL 09-03-22 : Crude Oil Holds High Ground Amid Commodity Bedlam as USD Pauses. Where To For WTI?


WTI SIGNAL 09-03-22 : Crude Oil Holds High Ground Amid Commodity Bedlam as USD Pauses. Where To For WTI?

Crude oil is sought after with the US confirming that they will ban Russian energy. The UK followed suit for crude but will still allow gas and coal imports.

WTI SIGNAL : The WTI futures contract is above US$ 126 bbl and Brent is above US$ 130 bbl. All other energy futures are higher through the Asian session.

Gold is also approaching an 18-month high after hitting US$ 2,070 an ounce overnight.

The action in the nickel market continues to reverberate through commodities as backwardation remains all pervasive. Backwardation indicates eagerness of the market to take immediate delivery rather than wait.

Nickel traded on the London Metals Exchange (LME) will remain closed at least until the 11th March.

Currencies reversed some of the big moves of earlier this week with the Japanese Yen and US Dollar giving up some ground while the Euro and Norwegian Krone picked up a touch.

WTI SIGNAL : Wall Street ended up posting only relatively small loses from their cash session, but volatility remains high as the day saw a wide trading range.

The VIX index, a measure of anticipated volatility on the S&P 500, remains at elevated levels. It closed at 35.12, well above the average for the last year of 20.07. Futures are pointing to a modest gain for the US indices when they re-open today.

APAC equities were mixed with Chinese and Hong Kong indices losing ground while Australia and Japan ticked up slightly.

Chinese CPI came in at 0.9% year-over-year to the end of February as forecasted and the same as January’s print. PPI came in at 8.8%, instead of 8.6% forecast and 9.1% previously.

WTI SIGNAL : Bonds have been steady in Asia after yields ticked up again overnight. The 10-year Treasury note is currently yielding 1.85% at the time of going to print.

The credit rating agency, Fitch, said today that they expect Russia to imminently default on their bonds. This comes on the back of their rating cut last week, joining Moody’s and S&P.

JPMorgan removed Russian bonds from their bond indices overnight. Russian equities have been removed from all the major indices.

The Western world has closed its capital market to Russia. Exactly how investors will retrieve cash for their existing holdings remains unknown.

Looking ahead, the US will see mortgage numbers later today before the all-important CPI figure tomorrow.

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