Oil and Cryptos – Oil is at a 7 year high and Cryptos shaking off regulatory worries

October 4, 2021

Ed Moya, Senior Market Analyst at OANDA joins us to discuss the pop higher in oil today. After OPEC confirmed the group will continue with modest output increases the market is further pushing oil to a 7 year high, of around $78/barrel. We also look at the role the US producers could play and if they are even able to ramp up production.

We then move to the crypto sector recapping the price actions after China’s recent crackdown. Price dropped but has quickly rebounded.

Click here to visit the OANDA website to follow along with Ed’s daily market commentary.

    Oct 04, 2021 04:12 PM

    Crypto Firm Mistakenly Sends Out $89 Million, Asks Users To Please Return It

    Irina Ivanova 2 hrs ago

    “A technical glitch in a crypto marketplace has just made some cryptocurrency users tens of millions of dollars richer — and the marketplace founder’s threats have ignited a debate about the rules of digital money in an authority-less world.”

    “Compound, a popular cryptocurrency platform, last week put out what should have been a routine update to the code that governs users’ transactions. However, the update contained a bug that mistakenly sent up to $89 million worth of crypto tokens into some users’ accounts.”

      Oct 04, 2021 04:13 PM

      Well Compound, has sure “compounded” their errors on this one…

        Oct 04, 2021 04:31 PM

        Have thee people ever heard of a Dev or Qual testing environment?

          Oct 04, 2021 04:37 PM

          Apparently not.

          However, they did ask everyone to return the $89 Million in crypto tokens they sent out to everyone, so what could go wrong? Haha!

          Once again, the issues are not the security of the cryptos themselves, but this is just one in a long chain of failures by the crypto platforms that are the custodians of the coins for most crypto HODL’ers. The talking points are always about the security in the coins, when it should be the dozens of breaches that wipe out investors at the crypto exchange level. It doesn’t matter how secure the blockchain ledger is, if the custodian of ones cryptos gets hacked, goes under, or makes a gross competency error.

            Oct 04, 2021 04:51 PM

            Ex – I’d be willing to bet that they had farmed out the data center/web operations to a lowest bidder somewhere in Asia.

            It matters who is sitting behind the server’s keyboard. Good luck getting the 89 million back, this is gonna be a hit to their bottom line.

            Oct 04, 2021 04:01 PM

            Agreed Mike. Those are precisely the kinds of risks in these crypto exchanges that rarely get discussed. Yes, good luck in getting everyone to return the $89 Million in free tokens they just received. What a mess. Haha!

      Oct 04, 2021 04:49 PM

      Elon Musk Urges Government To “Do Nothing” To Regulate Crypto

      Wed, September 29, 2021

      CoinDesk Learn Editor, Ollie Leech, explains Elon Musk’s recent comments on crypto regulation and the fallout from China’s most recent crypto crackdown.”

      Oct 04, 2021 04:26 PM

      Krell Money at its best!

        Oct 04, 2021 04:34 PM

        +1 BDC. Dr. Morbius would be proud.

    Oct 04, 2021 04:21 PM

    Pretty funny and spot on post from the Northman Trader yesterday. 🙂

    Sven Henrich @NorthmanTrader 2:06 PM · Oct 3, 2021· Twitter

    > Everybody: “Inflation is going to be a much bigger problem than expected.”

    >> FED: “Lalalalala… I can’t hear you.”

      Oct 04, 2021 04:26 PM

      Another interesting observation from Northman Trader today:

      Sven Henrich @NorthmanTrader 7:39 AM · Oct 4, 2021·Twitter for iPhone

      “These markets just haven’t been the same since Kaplan and Rosengren announced they’re selling.”

        Oct 04, 2021 04:28 PM

        The first 2 responses:

        jo§h @thirtyscale · 4h Replying to @NorthmanTrader

        “Strange coincidence huh?”

        Sir Myan Rohen M.D. @someran14359329 · 4h

        “Bought at the low sold at the top. I wish I was an insider without any consequences.”

          Oct 04, 2021 04:31 PM

          Fed’s Kaplan, Rosengren to Sell All Stocks Amid Ethics Concerns

          Catarina Saraiva and Craig Torres – September 9, 2021

          “Boston Fed chief Eric Rosengren and Dallas Fed’s Robert Kaplan released near-identical statements Thursday after their most recent financial disclosure documents showed active trading in a range of investments during a year in which the central bank took sweeping policy actions to protect the U.S. economy from Covid-19.”

          “At a time when they are being roundly criticized and to the extent to which the policies have made the rich richer, you need to question the optics of what these guys were doing,” said Mark Spindel, chief investment officer of Potomac River Capital in Washington. “It doesn’t shed positive light on them.”

            Oct 04, 2021 04:33 PM

            Robert Kaplan Was Trading Like a Hedge Fund Kingpin for Five Years while President of the Dallas Fed; a Dozen Legal Safeguards Failed to Stop Him

            By Pam Martens and Russ Martens: September 27, 2021


    Oct 04, 2021 04:47 PM

    What could possibly go wrong if Wall Street trading computerized?

    Oct 04, 2021 04:53 PM

    Why is the energy sector outperforming again? Why would it not be languishing (relatively) like many other resources? Thank you. Matt

    Oct 04, 2021 04:06 PM

    Michael Boutros (Oil @ 40:20, Gold & Silver @ 45:20):

    Oct 04, 2021 04:59 PM

    Energy Prices in Europe Hit Records After Wind Stops Blowing

    Heavy reliance on wind power, coupled with a shortage of natural gas, has led to a spike in energy prices

    By Joe Wallace – Wall Street Journal – Sept. 13, 2021

    “Natural gas and electricity markets were already surging in Europe when a fresh catalyst emerged: The wind in the stormy North Sea stopped blowing.”

    “The sudden slowdown in wind-driven electricity production off the coast of the U.K. in recent weeks whipsawed through regional energy markets. Gas and coal-fired electricity plants were called in to make up the shortfall from wind.”

      Oct 04, 2021 04:02 PM

      The U.K. Went All In On Wind Power. Here’s What Happens When It Stops Blowing

      By Sophie Mellor – September 16, 2021 – Fortune

      “The exponential growth of offshore wind farms in the North Sea has been a testament to the combined efforts of European countries’ investing time, effort, and money in the decarbonization of their electricity grids.”

      “But just as Europe needs energy the most, the wind in the North Sea has stopped blowing, forcing regional energy markets to scramble for gas reserves to heat homes and power businesses.”

      “This has had expensive consequences.”

        Oct 04, 2021 04:09 PM

        “This has had expensive consequences.” – Gee, do you think?

        This whole over-emphasized push for renewables, at the expense of plentiful and proven power sources, has been tragic comedy of failed policies and mal investment each time it was tried.

        Look at the mess Germany and Japan both have been in, with soaring energy, as they tried to scale out of and replace nuclear power.

        Germany grand-standed in a woke fashion about ditching nuclear, only to turn to importing nuclear energy from their neighbors in France, and then importing or consuming much dirtier coal power as the substitute. Yeah…. brilliant!

        Japan kept 40 of their 50 nuclear reactors off since Fukushima in and emotional over-reacting, lacking in logic. (when all those reactors were fine and had been just fine for operation up until that natural accident paired with foolhearty design of keeping the back up generator below sea level in the basement, and keeping spent fuel rods on premise that magnified their goof.). For the last decade, Japan has been saddled with intermittent power outages, importing of coal and natural gas, and they’ve spiked their energy costs, instead of doing the rational thing and turning the other 40 reactors back on. Apparently there is a new political push to get them restarted again, about a decade late… but hey, who’s counting?

          Oct 04, 2021 04:18 PM

          I don’t mean to leave the US out of this insane energy mismanagement either.

          Let’s not forget the idiocy in blocking the Keystone Pipeline, yet the irrational exuberance in funding the solar black hole of Solyndra in that scandal.


          Solyndra Scandal

          The Washington Post

          Key coverage of the investigation into Solyndra, the Silicon Valley startup that collapsed, leaving taxpayers liable for $535 million in federal guarantees .

          Documents Show politics infused Obama ‘green’ programs
          Joe Stephens and Carol D. Leonnig – Dec 25, 2011

            Oct 04, 2021 04:19 PM

            Barack Obama Solyndra Scandal: 8 Facts About Green Energy Company Controversy

            By Alana Marie Burke | Thursday, 29 January 2015


            Oct 04, 2021 04:24 PM

            With A Pen Stroke, President Joe Biden Cancels Keystone XL Pipeline Project

            Kristie Pladson – DW – Jan 21, 2021

            “Within hours of taking his oath of office, Joe Biden, the 46th president of the United States, had signed over a dozen executive orders, among them one canceling the permit for the Keystone XL oil and gas pipeline.”

            “The pipeline was to carry millions of gallons of oil from Canada to refineries in the US. ”

            “Approved by Canadian regulators in 2010, the project was blocked by former US President Barack Obama in 2015, who said the benefits of the pipeline would have too heavily favored Canada while producing additional greenhouse gas emissions.”

            “Obama’s successor, President Donald Trump, later reversed the decision, issuing a presidential permit for the project in 2017. Operations were due to begin in 2023.”


      Oct 04, 2021 04:12 PM

      Energy Costs Spike in Europe as Wind Stops Blowing

      Philip Caldwell – Washington Free Beacon • September 14, 2021

      “The wind has stopped blowing in the North Sea, where Britain holds the bulk of its offshore wind farms. The resulting shortage in wind-energy production has driven a surge in fossil fuel prices as European countries seek to compensate for the energy shortfall through other sources, according to the Wall Street Journal.”

        Oct 04, 2021 04:28 PM

        Russia Is Pumping A Lot Less Natural Gas To Europe All Of A Sudden — And It Is Not Clear Why

        Aug 24 2021 – Sam Meredith

        “European piped natural gas supply from Russia has slowed in recent weeks, raising questions about the potential causes behind the drop and its implications for global gas markets.”

        “It comes shortly after German Chancellor Angela Merkel sought to ease long-running concerns about the nearly completed Nord Stream 2 pipeline, saying further sanctions may be imposed if Moscow used gas “as a weapon.”

        “Some analysts have suggested Gazprom, Russia’s state-owned gas giant, may be limiting its delivery of discretionary natural gas supply to Europe to support its case in starting flows via Nord Stream 2.”

    Oct 04, 2021 04:35 PM

    Tying together all the thoughts from today’s daily editorial on Energy and the potential path forward for Cryptos….

    Here is an article which was posted last week where the Crypto miners are considering buying the excess power from Nuclear reactors. That’s the kind of upside down world we live in where nations have insane power policies that crush nuclear power generation in lieu of the supposedly “greener” Solar and Wind, stall or cancel to major Oil/Gas pipelines reeking havoc on energy prices, and then end up importing nuclear, importing Nat Gas into rising prices, or simply go back to the much dirtier Coal (which has also spiked in prices due to this).

    > Meanwhile Nuclear energy is the only 24/7 carbon neutral power generation method, and it has been shunned, but it has extra capacity that the cryptoverse is latching onto, since the nations of the world are asleep at the wheel.

    >> We are living in a mixed up and insane time…


    Bitcoin Miners Eye Nuclear Power as Environmental Criticism Mounts

    Wall Street Journal – By Jennifer Hiller – Sept. 26, 2021 #Uranium

    “Bitcoin miners, under fire for their sizable environmental footprint, are forging partnerships with owners of struggling nuclear-power plants with electricity to spare.”

    The matchups have the potential to solve key issues facing each industry, executives and analysts say: Electricity-hungry bitcoin miners want stable and carbon-free power, while nuclear plants facing competition from cheaper power sources need new customers.”

    Oct 05, 2021 05:17 AM

    Lunatic energy policy is an aspect of forced deindustrialization tracking back no less than half a century. Concentration into passive forms of generation is meant to cripple its foolish victims, and is in no way accidental.

    Oct 05, 2021 05:36 AM

    Price Quality:
    PMs continue struggle to maintain luster.
    As Oil gushes, Petrodollar rhymes.
    Uranium back in business.