U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
Moody's Upgrades Argentina's Credit Rating Amid Economic Reforms 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
Trump’s "Shock and Awe" Agenda: Executive Orders from Day One 
Stock Futures Dip as Investors Await Key Payrolls Data 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
S&P 500 Relies on Tech for Growth in Q4 2024, Says Barclays 
Urban studies: Doing research when every city is different 
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 
Bank of America Posts Strong Q4 2024 Results, Shares Rise 
European Stocks Rally on Chinese Growth and Mining Merger Speculation 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
Lithium Market Poised for Recovery Amid Supply Cuts and Rising Demand 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
Moldova Criticizes Russia Amid Transdniestria Energy Crisis 
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential 
Global crude oil prices have steadied at close to $70/bbl in recent weeks and have pushed to fresh three-year highs while articulating. Current prices have been slightly edgy extending losses into a third session, amid speculation on weekly inventory data that is due later in the day would show an increase in U.S. oil and fuel supplies.
The API report also showed a gain of 2.6 million barrels in gasoline stocks, while distillate stocks, which include motor diesel and heating oil, fell by about 4.0 million barrels.
The combined effect of stronger economic growth, the reload of a North American cold snap likely in February, and unplanned supply shortfalls have all tightened oil markets more rapidly than market consensus expectations previously discounted.
Go long December 2018 WTI $68-75 call spread, with the prospects that prices stay strong in the coming weeks, and possibly months, as the oil market continues to tighten and the build-up in shale growth momentum is still some way off, we look for the tightness in WTI pricing to increase.
Given the already substantial increase in prices that we have seen in the past six months, on hedging grounds, we advocate adding long a WTI 68-75 call spread at a cost of $1.40/bbl.
Go long a December 2018 WTI $68-75/bbl call spread (net premium: $1.40).
