Showing posts tagged with: commodity

Oil Market Recovery

Blue Quadrant Research Team
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Market Commentary

Oil Market Recovery In Site

 

The International Energy Association (IEA) has reported in its most recent monthly Oil Market Report (OMR) for February, that global oil supply declined by 180,000 barrels per day (b/d) in February to 96.5mn b/d. More notably, the IEA also said that preliminary data for February suggested that OECD commercial inventories had declined during the month, marking the first such decline in just over a year.  Furthermore, the IEA said it expected total non-OPEC supply to decline by 750,000 b/d in 2016, mainly driven by a decline of 530,000 b/d in the US market, as marginal shale producers cut back  heavily on capital investment in new drilling programs.

 

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The VW Scandal: SA Platinum Impact

Blue Quadrant Research Team
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Market Commentary

The VW scandal

What does it mean for diesel vehicles, platinum and South Africa? There exists the potential for modestly reduced platinum demand over 1-3 years if fewer small diesel vehicles are sold as platinum is a key component of the catalytic converter found in diesel vehicles.  

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Physical Platinum

Blue Quadrant Research Team
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Market Commentary

Physical Platinum

We have over the past six months built up a large position in the underlying physical platinum metal itself. The rationale is pretty simple, at current prices, almost the entire South African platinum industry is generating negative cash flows after taking capital expenditure into account, a situation which is clearly not sustainable. At some point, either the Rand will have to weaken substantially further or the actual dollar-denominated price of platinum will have to improve.  

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