Month: March 2017

Bullish Natural Gas Services Group

One of the data points we monitor is the demand composition of natural gas. As per the most recent consumption data published by the Energy Information Agency (EIA) there seems to be a strong underbelly of demand building up at a time when prices are near a two decade low. Whether or not this increasing demand will manifest itself in to significant price gains for the commodity is entirely dependent on how fast the supply can keep up with the demand growth. To be safe, even if we assume that new supply will be able to offset any new demand and that prices will stay flat over time, the one thing we can certainly count on is an increase in the number of molecules of natural gas in the pipeline system in the US.

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Platinum, Ain’t So Precious!

Platinum has been steadily gaining its share of investment demand from precious metals investors, alongside gold and silver. As per the World Platinum Investment Council, investment demand for Platinum was 150 koz in 2014, 260 koz in 2015, and 505 koz in 2016 but the possibility of a declining industrial demand going forward will make it a tough battle for precious metals investors to continue justifying platinum’s preciousness. Of the 7,780 koz of platinum consumption demand forecast for 2017, 3,245 koz, or roughly 41%, is forecasted to come from the automotive sector (especially the diesel segment) for use in catalytic converters. This is the largest single component of platinum demand and that might be a big problem going forward.

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