The 20 Million Barrels of Pure Profit Sitting in U.S. Oil Tanks
(Bloomberg) -- Just as Wall Street says the U.S. is running out of room to store oil, it turns out there's another 20 million barrels of empty space.
Where? Right at the top of the tanks.
A supply glut has dragged U.S. crude for May delivery almost $10 a barrel below contracts a year out. This market structure, known as contango, has encouraged traders to shove the most oil in 80 years into storage so they can sell it for more in the future. The problem is, tanks are filling up, according to banks from Bank of America Corp. to Citigroup Inc. and Goldman Sachs Group Inc.
Japanese investors' mega buying spree overseas keeps yen under pressure
(Reuters) - Purchases of foreign stocks and bonds by Japan's giant pension funds and other big investors in 2015 could be their highest for at least a decade, if they keep pace with the $42 billion splurged during the first two months.
At that rate their annual net sales of yen would be over 30 trillion, the most since the government started keeping records a decade ago, and almost as much as the previous five years combined.
That will add to pressure on the yen, which earlier this month struck 122 per dollar - its lowest level since July 2007.
Dollar Revives With Volatility as BofA Keeps Euro Parity Call
(Bloomberg) -- Bank of America Corp. is keeping faith that the dollar will rise to parity with the euro this year amid signs the U.S. currency has found its feet following the worst weekly slide in three years.
The greenback remained stronger after gaining Tuesday as the impact of the Federal Reserve's surprise reduction in interest-rate forecasts waned and investors' focus turned to U.S. economic data. The Bloomberg Dollar Spot Index has weakened almost 3 percent from a decade high reached March 13, while a gauge of expected currency swings has jumped by more than 20 percent over the past month.
"This trend of U.S. dollar strength is not going away any time soon," Adarsh Sinha, head of Asia-Pacific Group-of-10 foreign-exchange strategy at Bank of America in Hong Kong, said at a media briefing Wednesday. As long as the Fed raises rates this year, monetary-policy divergence will drive the dollar higher against its major peers, he said.