Ukraine Crisis Spilling Over Into Global Oil Market

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April 14 (Bloomberg) -- Larry Shover of SFG Alternatives and Bloomberg's Alix Steel and Greg Bender examine oil prices. They speak on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

Ukraine and russia.

For more on the commodity, i am joined by greg ender and larry schober, chief investment strategist alternative.

Let's start with you.

Why is the situation in eastern ukraine driving a race is a particular?

Class we have global escalation of tensions.

What is more interesting is what we're look at.

The french premium, the lowest level since september.

It was at $1.25 and is now narrowed.

Now what are you saying?

Class at the same time, a lot of supply instructions locally immunize date seem to be clearing up, like the gulf of mexico.

However, wti is not going down.

A market not going lower on bearish information, is there something else at work here?

Potentially, and this is easier with hindsight, but back when crude oil and the commodity markets were automating -- bottoming, something more stable like energy.

Also, we're seeing the premium cap short because of the geopolitical risks overall in the market.

Relatively bullish, i would say.

What is your trade?

Class i happen to be bearish on wti.

Obviously, the supplied the mammoth are huge area i do believe the markets are officiating how quickly we get an oversupply situation.

Weather-related issues are being quickly resolved and what is going on in the gulf is being resolved as well.

Let's face.

Expansion could add 3000 barrels and keystone, 200,000 by july.

It could add up to 300,000. a bigger market might be under appreciating how quickly we could go to super ingestion to oversupply.

He sound pretty bearish.

Right now, i would sell the june contract.

Last i looked, there was one of through -- 103. i have been wrong before.

And if this does not happen quickly enough, we could see one of five or 106. on the downside, i buy back around $96. let's look that trade into real terms.

You make a profit of about seven dollars per barrel.

The contract controls about 1000 barrels.

The seven dollar profit gets multiplied by 1000, and the total profit could be as much as $7,000 that larry is looking at the of the last word for you, the word of the week is momentum.

Explain what that means.

Quantitative uses momentum as price today versus the price a number of days ago.

A look to identify trends.

Symptoms are going bullish.

The trends are going higher.

You're seeing in crude oil.

We are right against the resistance level at about $105, stock prices going up in march.

Larry's trade is interesting using type stops at that level.

Quests we have seen a tight range bound for oil in the last few months.

Unable to shake out one way or another.

Thank you so much.

Thank you both for your trade on oil.

All right.

Thank you so much.

Breaking news on retail sales.

How are consumers spending?

The headline numbers for the month of march are up 1.1%, a little bit better than a rise in 0.9%. if -- excluding autos and gas, sales double from economists forecast.

It looks like the winter storms have used in march, bringing winters back to the stores.

You can see markets getting a lift today.

I want to get to the economic editor pouring to the numbers.

Not only did we have a better than expected result this time, but the numbers for february's were revised higher to a 7/10%

This text has been automatically generated. It may not be 100% accurate.


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