Thanks for listening to the CRG Channel on the EKT Interactive Oil and Gas Podcast Network.
Commodity Research Group (CRG) is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct hedging strategies.
In this podcast, oil market experts Andrew Lebow and Jim Colburn discuss key fundamental forces driving oil prices in both the futures and options markets.
If you don’t have 35 minutes, I recommend segments 11:35-18:45 for a discussion on product demand and US refining or from 18:55 – 24:50 for their analysis of crude oil inventories.
Topics and Time Stamps:
[01:35] OPEC recap – Production down – Reigning in Nigeria
[04:35] OPEC production call for Q3
[05:50] CSOs – Flat calls gaining momentum throughout curve
[07:00] Structure improves – Z7/Z8 spread making moves – over flat from -2.00
[09:10] US production growth flattening?
[11:35] US product demand and refinery situation
[15:15] Product arbs open
[18:55] EIA statistic analysis and future expectations – Crude stocks drawing significantly
[24:50] Venezuelan sanctions – or lack thereof – and what they could do to the market
[28:30] Price curve structure.
[25:20] Option recap – Implied volatility higher on rally – Z7 60 call has highest open interest
[31:40] $45 – $55 range in tact and still relevant
About the Experts
Andrew Lebow has been involved in the energy derivative area since 1980. He began his career with Shearson Lehman Brothers where he worked in the initial formulation and marketing of the NYMEX WTI crude contract in 1983 as well as the NYMEX gasoline contract in 1985.
Mr. Lebow has appeared before the State Government of Alaska as well as the State Department of Defense to discuss hedging techniques. Mr. Lebow is also well known as a market analyst and is quoted frequently in the financial press. He has appeared on television on CNBC, NBC, CNN, CBS, and PBS. Mr. Lebow holds a BA from Lafayette College and an MBA from the Kellogg School of Management at Northwestern University.
Jim Colburn is a futures and options professional with 30 years of wide ranging experience in commodity markets. For much of his career, at Man Financial (1989-2011) and Jefferies LLC (2012-2013), Mr. Colburn worked with major integrated oil companies, hedge funds, pension funds and other entities to develop market hedging and trading strategies.
He has conducted trading, hedging and risk management workshops in energy markets worldwide.
Mr. Colburn is a published author on options trading, hedging, market making and risk management. In 1986, while at the New York Mercantile Exchange, Mr. Colburn helped develop new markets in energy option contracts by educating the oil industry, banks, floor traders and brokers, worldwide.