The U.S. Federal Reserve decided to withdraw $10 billion from its monthly purchases in spite of the global concerns and the slowdown in emerging markets and that concerned investors are now left “wondering” what the next “shoe to drop” will be.
Cotton closed a little lower on some speculative long liquidation to finish the week. Prices overall have been supported by very good demand as export sales have been well above 400,000 bales for the last couple of weeks.
A long awaited report on the XL Keystone pipeline stated what everyone knew all along, the State Department said the Keystone XL pipeline would not have a significant impact on global warming or greenhouse gasses.
The shale gas revolution in the United States has led to a collapse in prices but is too big to keep to ourselves. That is turning natural gas from a domestic market to a global one, and the global demand may cure the current low prices.
Perhaps the most over-hyped and misused phrase in the trading world is “paradigm shift,” yet the proliferation of U.S. energy production has created just that. And it will take the world’s energy producers and consumers a while to get used to it.
Sean Pan and Ken Fu were high school buddies in China; they both came to the United States to study and find work in the energy field before coming back together to form Houston-based commodity trading advisor Pan Capital Management.
Continental Europe will probably be warmer than average for a third month in February as the milder counterpart of the polar vortex that gripped North America helps to extend a decline in power and gas prices.