GM35: The Drivers of the Commodity Markets ft. Nicky Ferguson

Today we are joined by Nicky Ferguson, Founder of It's Not a Science, an energy markets research firm based in Basel, Switzerland. We talk about speculative positioning in oil and natural gas futures, and how to distinguish between price action driven by fundamentals and flows. We discuss real time indicators of oil supply and demand, and the time it takes various investors to absorb new information. Finally, we discuss the limitations of the DXY dollar index as a baseline for measuring commodity price returns, increased options flows given new players in the market, and ways to understand what's going on based on modes of oil transport. Join us for a deep dive with an oil trader turned business owner, for an expert view of the mechanics of the energy market.-----EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder Tool-----Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.And you can get a free copy of my latest book “The Many Flavors of Trend Following” here.Learn more about the Trend Barometer here.Send your questions to [email protected] please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.Follow Cem on Twitter.Follow Nicky on LinkedInEpisode TimeStamps: 02:46 - Introduction to Ferguson and It's Not a Science 09:42 - The major players in the energy markets 12:56 - Speculative vs. commercial 18:43 - Forecasting the flow 25:02 - What has caused spikes in nat gas? 27:15 - Financial flows in commodity markets 30:22 - Risk considerations 32:14 - The relationship between fundamentals and price action 34:28 - Measuring demand 36:09 - The findings from Ferguson's research 39:46 - Oil on water supply vs land supply 41:33 - The...