SaxoTV

Hansen: Trading oil and gold volatility

564 views
March 26, 2015 bond buying, bond market, bond markets, bond yields, bonds, bonds and equties, bonds market, bonds update, bonds v equities, brent, brent crude, brent geo-political, brent oil, brent price, brent spread, brent wti, commodities, commodity, commodity market, commodity outlook, commodity prices, commodity strategy, commodity trade, commodity trading, crude, crude oil, crude oil price, crude oil prices, crude price, crude prices, crude spread, crudeoil, equities, equities trading, equity, equity market, equity markets, equity portfolio, equity research, equity strategy, equity trading, geo political, geopolitical, geopolitical tensions, geopolitics, gold, gold buy, gold buying, gold commodity, gold demand, gold dollar, gold exchange, gold future, gold investing, gold investment, gold levels, gold price, gold prices, gold spot, gold support, gold trade, gold trading, goldprice, oil, oil commodities, oil company, oil demand, oil drop, oil industry, oil inventories, oil market, oil markets, oil news, oil price, oil prices, oil production, oil refinery, oil spread, oil stocks, oil supplies, oil supply, oil trading, oil wealth, oilsupply, options, saudi arabia, saudi oil, saxo, saxo bank, saxo tv, trading, tradingfloor.com, wti, wti and oil, wti brent, wti crude, wti crude oil, wti price, wti supply, wti vs brent, yemen
Airstrikes on Yemen have resulted in the oil price moving up significantly. The country may only be a small oil producer, but it borders Saudi Arabia, the largest producer of crude in the world. The strait between Yemen and Dijbouti transfers three million barrels to Europe a day. But Saxo's Ole Hansen says it's WTI that's benefited the most due to increased speculative shorts. 

Hansen says that near-term there is an increased risk that the price of oil will track higher due to this geopolitical risk. But he says the world is still 'awash with oil'. He believes investors should look at WTI crude on the May futures as there is an option expiring on 16th April.

Gold too is up thanks to a weaker dollar, falling bond yields, a 'wobble' in the US equity markets plus increased geopolitical risk. Hansen says it could move as high as 1225 USD/Oz.