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Stocks open mixed, oil volatility reacts to Hurricane Beryl

Stocks are mixed at Wednesday's market open as the Dow Jones Industrial Average (^DJI) is just a tick below its flatline, while the S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) are rolling off of fresh record highs.

Jared Blikre joins the Morning Brief team to examine the price pressures hitting crude oil (CL=F, BZ=F) in the wake of Hurricane Beryl — which was downgraded to a tropical storm when it made landfall in Texas — and trends in the energy market and crude oil volatility (^OVX).

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Luke Carberry Mogan.

Video transcript

The New York Stock Exchange and the NASDAQ here in Midtown?

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Yes, Spectrum 360 ringing the opening bell at the NYC.

And then you've got some fun Fetty for talent energy at the NASDAQ.

Did you know yesterday Keegan Bradley was at the NASDAQ new Ryder Cup captain there?

Yeah.

Surprised you didn't make a trip up there?

I almost did.

We were on the show.

I was between hours at least.

Uh, so congrats to Keegan, Bradley.

Of course.

Um, a lot of people who've been fans of golf or watched the, uh, the full swing documentary they've seen where he didn't make the cut for the team, uh, in the last outing.

But now he's gonna be captain.

Good on him.

Good Boston culture right there.

All right.

You got the S and V and NASDAQ here looking in gains right at the open, the Dow just trading just slightly under the flat line.

Jared bicker standing by with a closer look at some of this movement that we're seeing Jared.

That's right.

I thought we'd start out with the oil market, so I'm going to load the WT I crude futures behind me.

And this comes as we're assessing the impact of hurricane barrel now Tropical Storm it is dissipated and it really was not that much of a factor may be disrupting 70,000 barrels per of crude oil production.

A couple of refineries were closed, but really just a drop in the bucket with respect to total supply and demand.

So just taking a look at the chart here.

Here's crude oil overnight.

I want to check out the year to date chart and you can see in the run up to the hurricane.

Barely even got a bulge.

Excuse me, Barely even got a bulge there.

Did not take out the high from April.

And so despite everything that's happening nowadays, we have geopolitical concerns.

Have a hurricane season which threatens to be worse than usual.

We are seeing oil volatility at multi year lows and let me just show you.

We have the Vick for stocks and we also have crude oil Vics.

Here is the CBO crude oil volatility index.

This is year to date, and if I put a five year look, you can see this is in fact, the lowest in those five years predates the pandemic.

You'd have to go back quite a bit far.

That's 10 years and maybe even farther than that.

So suffice to say, there is a lot of complacency in the market.

Not a lot of incremental news driving price.

Besides the storm, I believe we've got the latest OPEC plus production figures.

Looks like Russia is pumping a little bit more than it should be.

So is Iraq and Kazakhstan, but not enough to really put a dent on price.

Apparently so.

Just kind of slugging it out here with WT I hovering above $81 per barrel and Brent just short of $85 a barrel, guys.

All right, Jared, thanks so much.