⛏ Is the silver bull back?

Oil’s Phantom Barrels
When you read that China imports 11% of its oil from Malaysia, you picture tankers leaving Malaysian ports. You should check the math. Malaysia produces 355,000 barrels a day and consumes nearly a million. The country uses three barrels for every one it pumps out of the ground. Indonesia is worse: 605,000 barrels of production a day against 1.7 million in consumption. It has to fill that 1.1 million barrel gap somehow. Yet Chinese customs data says Indonesia and Malaysia together supply 21% of China’s crude imports. Two net importers, larger combined than Saudi Arabia on China’s official ledger. The math doesn’t square. The gap between the arithmetic and the official numbers is the most important trade setting up in global energy right now. Read on »

Is the silver bull back?
Notably in silver, bear squeeze conditions were evident this week. The likelihood of the bull market returning is now strengthened, particularly given gold’s improving prospects. The classic conditions for a bear squeeze are a combination of bearish trader consensus and an unexpected rise in the price, leading to shorts being squeezed into buying back their positions. That’s a reasonable description of market developments this week. Read on »

Gold Demand Up in Q1; Sets Record in Value Terms
Gold demand was up 2% year-on-year in the first quarter, setting a record in value terms. Including over-the-counter (OTC) selling, gold demand came in at 1,231 tonnes. Volume growth, coupled with the surging gold price, drove a 74% jump in the value of Q1 demand to a record of $193 billion. Read on »