A Brief Note On Market Neutral

Submitted By Zijian-Tai
Words: 564
Pages: 3
Open Document
Expectations: Market Neutral

November 28, 2012

Highlights

As total crude oil supply grows at 4.9 million barrels per day compared to the demand growth of 5.5 million barrels per day in 2011 results in upside potential for the price of oil as producers attempt to meet the demand.
The geopolitical risks surrounding Iran and the possibility of closing the Strait of Hormuz which six countries ship 16 million barrels of crude oil per day to global markets results in increased volatility for the oil sector as a whole.
As countries power capacity increases and nations look to replace coal for cleaner methods of power generation, natural gas would be the logical source to replace it.
The energy sector strives at the end of the earlier stage of recovery and at the beginning of the later stage of recovery, for these reasons this sector is set up to benefit as the economy recovers.
Oil WTI Cushing forecasted to be $88-$92, based on World Economic Supply and Demand, and Natural Gas Henry Hub forecasted to drop to $3.10, and $3.30

Figure 1 - S&P/TSX Canadian Energy sector index (3 year)

Sector Overview

Energy sector generally consists of all industries involved in the production and sale of energy, fuel extraction, manufacturing, refining and distribution. According to the financial markets; the energy industry comprises of company stocks primarily related to producing and supplying of energy i.e. exploration and development of oil and gas reserves, oil and gas drilling or integrated power firms. Fuel is a major resource in the world and in the new world era everything runs on some form of energy, it’s important in the maintenance of society. Consequently when the industry is not performing well, not only do the companies feel the pressure to perform well but the economy as well.
This report will concentrate on the Canadian energy sector and its viability as a potential investment. According to the monetary report summary by Bank of Canada the global economic activity has slowed down from July 2012 as predicted. However, the report goes on to mention there is an expectation for slow growth in late 2012 and pick up to capacity in 2013. Figure 1 summary of the information above. This is believed to continue through to 2014. The energy sector thrives during the early stages of a recovery (near the end of the stage) and the late
Show More

Related Documents: A Brief Note On Market Neutral

UK Universities Led To Pull Cash From Fossil Fuel Dephies

UK universities urged to pull cash from fossil fuel giants Anti-carbon divestment campaign targets £5bn of British funds Damian Carrington, The Observer, Saturday 26 October 2013 http://www.theguardian.com/environment/2013/oct/27/fossil-fuel-divestment-campaign-uk/print An international campaign to urge large institutions to dump fossil fuel investments reaches the UK this week, following rapid success in the US. The year-old divestment campaign, Fossil Free, has grown even faster than similar…

Words 961 - Pages 4

Essay about Amaranth Case

Advisors: Burning Six Billion In Thirty Days Introduction: In September, 2006, a large-sized hedge fund named Amaranth Advisors LLC lost $4.942 billion in natural gas futures trading and was forced to close their hedge fund. Although Amaranth Advisors was not exclusively an energy trading fund, the energy portion of their portfolio had slowly grown to represent 80% of the performance attribution of the fund. Their collapse was not entirely unforeseeable or unavoidable. Amaranth had amassed very large…

Words 875 - Pages 4

Amaranth Case Essay

Advisors: Burning Six Billion In Thirty Days Introduction: In September, 2006, a large-sized hedge fund named Amaranth Advisors LLC lost $4.942 billion in natural gas futures trading and was forced to close their hedge fund. Although Amaranth Advisors was not exclusively an energy trading fund, the energy portion of their portfolio had slowly grown to represent 80% of the performance attribution of the fund. Their collapse was not entirely unforeseeable or unavoidable. Amaranth had amassed very large…

Words 894 - Pages 4

Renewable Energy Who S Right Essay

Renewable Energy, Who’s Right Lisa Turley HUM/111 October 13, 2013 Erin Reyes Smith People on both sides of the renewable energy debate feel that their point of view is valid. Both sides of the debate state many good reasons as to why one is better than the other. This debate leaves many of us that want to do what is best for the planet, confuse about which side is right. If facts presented on both side are factual, then why is it so hard to pick a side. People in favor of renewable…

Words 612 - Pages 3

Energy Efficiency Through Energy Financing Districts Essay

OVERVIEW OF ENERGY EFFICIENCES There has been much focus over the past decade by the Government and the media regarding the benefits of renewable energy. All across the Midwest and Western United States, utility companies are benefiting from federal subsidies and tax credits to build wind farms and installing solar panel systems. Unfortunately, wind and solar still have major limitations. The unpredictability of wind farms force Utility companies to “cycle” coal plants, making them operate inefficiently…

Words 3302 - Pages 14

British Petroleum (Bp) Case Study Essay

British Petroleum (BP) Case Study Executive Summary This case study report examined a public relation management problem that British Petroleum (BP) faced since the oil spill accident happened in April, 2010. In addition, this thesis recommended possible solutions and implementation plans for BP to deal with the public crisis. On April 20, the explosion on the Deepwater Horizon drilling rig in the Gulf of Mexico led to the largest accidental release of oil into marine waters in history. As a…

Words 5552 - Pages 23

Research Paper Energy Service Company

Energy Services Company (ESCO) business in India: Market Opportunities and Barriers Contents 1. Objective ........................................................................................................................... 2 2. Meaning ............................................................................................................................ 2 3. Business Models ........................................................................................................…

Words 6567 - Pages 27

Chinese development machinery in to the sea main market mergers and acquisitions Essay

Not long ago launched report, the present boom in overseas mergers and acquisitions of domestic enterprises from your past state-owned enterprises , China has steadily turn out to be the two public and private providers on the situation , while China’s large enterprises to choose the location acquisitions during the past 12 many years targeted around the U.s. and Germany.fixed stone crusher production line in mexico The report noted that the development machinery market mergers and acquisitions…

Words 353 - Pages 2

Deutsche Bank Sustainability Essay

They are also working on ways to help fund clean tech companies Eco-Efficiency Manager DB wants to lower their carbon foot print they can challenge themselves to devise energy-efficient solutions that have a positive impact on their bottom line and on other companies who they are trying to reach out to. According to Ecodesk in 2010 DB produced 612,588…

Words 1883 - Pages 8

Group Project AxoGlobal Essay

Juan Jose Sanchez Kevin Sarreri Phaa Rowe Milos Smiljanic Table of Contents Introduction 2 Structure, Planning and Reason 3 Risk, Assets, Liabilities and Management Issues 4 Investment Strategies: 6 EU Stocks: 6 Gold 7 Oil 8 Renewable energy 9 UK Treasury Bills 10 Portfolio 11 Conclusion 11 Introduction In this day and age, business is the path of our development as the human species, leading innovation in technology and medication, to giving each person the opportunity to…

Words 4411 - Pages 18