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Showing posts with label Oil. Show all posts
Showing posts with label Oil. Show all posts
Saturday, March 9, 2019
Saturday, February 27, 2016
Oil Supply: Is there a possibility of an OPEC production cut?
The speculation surrounding the possibility of an OPEC production cut have not gone away, despite the comments from Saudi oil minister Ali al-Naimi earlier this week.
Venezuela’s oil minister stoked the markets when he said on Thursday that representatives from Russia, Saudi Arabia, Qatar, and Venezuela would meet in mid-March to discuss cooperative efforts to stabilize oil prices. Oil prices shot up more than 1 percent on the news, but there isn’t much new here to trade on.
hese countries will move forward with the production freeze, but that will likely have only a limited effect on the fundamentals in the short-term. An actual production cut remains a remote possibility for now.
Insure-Digest
Venezuela’s oil minister stoked the markets when he said on Thursday that representatives from Russia, Saudi Arabia, Qatar, and Venezuela would meet in mid-March to discuss cooperative efforts to stabilize oil prices. Oil prices shot up more than 1 percent on the news, but there isn’t much new here to trade on.
hese countries will move forward with the production freeze, but that will likely have only a limited effect on the fundamentals in the short-term. An actual production cut remains a remote possibility for now.
Insure-Digest
Tuesday, January 26, 2016
Wall Street Casino Roller Coaster : Dow closes up triple digits as 3M climbs, oil bounces
U.S. stocks closed higher Tuesday, helped by a bounce in oil and
some earnings beats, ahead of the release of the Fed meeting statement
Wednesday.
"Again it comes back to our high correlation to oil," said JJ Kinahan, chief strategist at TD Ameritrade.
"I would say there's some short-covering to this rally and there's a little bit of expectation that Apple can help things with earnings tonight," he said.
he major averages closed off session highs but held more than 1 percent higher as oil topped $31 a barrel.
The Dow Jones industrial average outperformed, closing nearly 1.8 percent higher for its best day since December 4 as 3M surged on its earnings report.
"I think this is a lot of noise, a lot of volatility before we hear from the Fed," said John Caruso, senior market strategist at RJO Futures.
Despite Tuesday's gains, the major averages were still lower by almost 7 percent or more for the year so far and more than 10 percent below their 52-week intraday highs, in correction territory.
Note EU-Digest: The unregulated Wall Street Casino - up 200 one day - down 200 the next, as the manipulating management of this Casino. (the financial Industry) laugh all the way to the bank.
Read more: Dow closes up triple digits as 3M climbs, oil bounces
"Again it comes back to our high correlation to oil," said JJ Kinahan, chief strategist at TD Ameritrade.
"I would say there's some short-covering to this rally and there's a little bit of expectation that Apple can help things with earnings tonight," he said.
he major averages closed off session highs but held more than 1 percent higher as oil topped $31 a barrel.
The Dow Jones industrial average outperformed, closing nearly 1.8 percent higher for its best day since December 4 as 3M surged on its earnings report.
"I think this is a lot of noise, a lot of volatility before we hear from the Fed," said John Caruso, senior market strategist at RJO Futures.
Despite Tuesday's gains, the major averages were still lower by almost 7 percent or more for the year so far and more than 10 percent below their 52-week intraday highs, in correction territory.
Note EU-Digest: The unregulated Wall Street Casino - up 200 one day - down 200 the next, as the manipulating management of this Casino. (the financial Industry) laugh all the way to the bank.
Read more: Dow closes up triple digits as 3M climbs, oil bounces
Sunday, January 24, 2016
Oil: Will Cheap Oil Kill Global Stability ? "No it won't say experts-Yes it will says Wall Street PR on steroids" - by Judy Dempsey
Kris Bledowski, Director of economic studies at the Manufacturers Alliance for Productivity and Innovation notes:
"The answer depends on how “stability” is defined. In political terms, one could see some instability creep in or deepen in countries where oil plays a disproportionately large fiscal role.
Yet this impact would be felt locally rather than globally, andmostly in countries with already-weak polities. Venezuela, Nigeria, or parts of the Middle East come to mind. It’s less likely that potential conflicts could spill over outside domestic or localtheaters.
The economic impact has already been felt the world over. In the United States, mining activity has depressed industrial output, while in Canada the entire economy plunged into recession in 2015 as a result of sharply lower oil prices.
At the same time, income losses are being at least partly offset by gains on the consumer end. Shifts in relative prices of major inputs or outputs occur all the time,and the world economy is resilient enough to absorb them. Overall, oil and its derivatives make up a small and declining share of unit energy costs.
If global investment flows are more unpredictable, currencies more volatile, and changes in income more pronounced, other factors should be taken into account as well. Among them are differences in monetary policies (in the United States and the EU), private debt levels (in Brazil and China), and economic governance (in Russia and Saudi Arabia).
Ian Bremmer, President and founder of Eurasia Group says:
"Did Mikhail Gorbachev’s reforms kill Soviet stability? No. They hastened the melting of frozen instability. That’s the impact of cheap oil on the Middle East, in particular the Sunni Arab petrostates and the governments that rely on their largesse.
There’s already little domestic legitimacy keeping these regimes in place. The United States has little desire toact as the region’s policeman, and nobody else is going to pick up the baton.
Communication technologies allow disenchanted young men to more easily mobilize.
And there are scant few social, economic, and political reform efforts among the governments themselves; security solutions don’t address the underlying problems. Cheap oil makes those conflicts grow sharper. And faster."
Jan Cienski, Energy and security editor at POLITICO says:
"No, cheap oil won’t kill global stability—infact, it will bolster it. That doesn’t mean low oil prices aren’t terrible news for a host of countries like Russia, Saudi Arabia, Venezuela, Angola, and other emerging markets that have built their budgets on oil exports. But as their revenues shrink, their largely autocratic rulers will have to focus more on keeping their people from rebelling over budget cuts and less on causing trouble abroad.
No, cheap oil won’t kill global stability—in fact, it will bolster it. That doesn’t mean low oil prices aren’t terrible news for a host of countries like Russia, Saudi Arabia, Venezuela, Angola, and other emerging markets that have built their budgets on oil exports.
But as their revenues shrink, their largely autocratic rulers will have to focus more on keeping their people from rebelling over budget cuts and less on causing trouble abroad."
Deborah Gordon, Director of Carnegie’s Energy and Climate Program notes: "mighty global omnipotence is often attributed to oil. But it’s unclear whether low (or high) oil prices themselves can be squarely blamed for growing global instability. Increasing oil market volatility, however, could prove to be a stronger destabilizing force.
If oil prices continue to swing wildly back and forth in the years ahead, this could confound economic, technological, and geopolitical fundamentals."
Note EU-Digest: Wall Street and the financial Industry seem to be the only ones who are saying that lower oil prices will contribute to Global Economic and Political Instability , mainly because it hurts their energy investments and market portfolio's . The drop in oil prices, however, has been very beneficial to consumers and the the economy in general.
EU-Digest
"The answer depends on how “stability” is defined. In political terms, one could see some instability creep in or deepen in countries where oil plays a disproportionately large fiscal role.
Yet this impact would be felt locally rather than globally, andmostly in countries with already-weak polities. Venezuela, Nigeria, or parts of the Middle East come to mind. It’s less likely that potential conflicts could spill over outside domestic or localtheaters.
The economic impact has already been felt the world over. In the United States, mining activity has depressed industrial output, while in Canada the entire economy plunged into recession in 2015 as a result of sharply lower oil prices.
At the same time, income losses are being at least partly offset by gains on the consumer end. Shifts in relative prices of major inputs or outputs occur all the time,and the world economy is resilient enough to absorb them. Overall, oil and its derivatives make up a small and declining share of unit energy costs.
If global investment flows are more unpredictable, currencies more volatile, and changes in income more pronounced, other factors should be taken into account as well. Among them are differences in monetary policies (in the United States and the EU), private debt levels (in Brazil and China), and economic governance (in Russia and Saudi Arabia).
Ian Bremmer, President and founder of Eurasia Group says:
"Did Mikhail Gorbachev’s reforms kill Soviet stability? No. They hastened the melting of frozen instability. That’s the impact of cheap oil on the Middle East, in particular the Sunni Arab petrostates and the governments that rely on their largesse.
There’s already little domestic legitimacy keeping these regimes in place. The United States has little desire toact as the region’s policeman, and nobody else is going to pick up the baton.
Communication technologies allow disenchanted young men to more easily mobilize.
And there are scant few social, economic, and political reform efforts among the governments themselves; security solutions don’t address the underlying problems. Cheap oil makes those conflicts grow sharper. And faster."
Jan Cienski, Energy and security editor at POLITICO says:
"No, cheap oil won’t kill global stability—infact, it will bolster it. That doesn’t mean low oil prices aren’t terrible news for a host of countries like Russia, Saudi Arabia, Venezuela, Angola, and other emerging markets that have built their budgets on oil exports. But as their revenues shrink, their largely autocratic rulers will have to focus more on keeping their people from rebelling over budget cuts and less on causing trouble abroad.
No, cheap oil won’t kill global stability—in fact, it will bolster it. That doesn’t mean low oil prices aren’t terrible news for a host of countries like Russia, Saudi Arabia, Venezuela, Angola, and other emerging markets that have built their budgets on oil exports.
But as their revenues shrink, their largely autocratic rulers will have to focus more on keeping their people from rebelling over budget cuts and less on causing trouble abroad."
Deborah Gordon, Director of Carnegie’s Energy and Climate Program notes: "mighty global omnipotence is often attributed to oil. But it’s unclear whether low (or high) oil prices themselves can be squarely blamed for growing global instability. Increasing oil market volatility, however, could prove to be a stronger destabilizing force.
If oil prices continue to swing wildly back and forth in the years ahead, this could confound economic, technological, and geopolitical fundamentals."
Note EU-Digest: Wall Street and the financial Industry seem to be the only ones who are saying that lower oil prices will contribute to Global Economic and Political Instability , mainly because it hurts their energy investments and market portfolio's . The drop in oil prices, however, has been very beneficial to consumers and the the economy in general.
EU-Digest
Friday, January 22, 2016
Oil Prices Rebound Above $30. Is A Rally Finally Here?
Oil prices plumbed new lows this week, dropping below $28 per barrel. But oil also closed out the week on a positive note, with huge gains on Thursday and Friday, rallying back above $30 per barrel. The price increase could be a sign that the markets think that oil has been far oversold, that trading this low has been “irrational,” as the head of Saudi Aramco put it this week.
Adding to the upsurge was growing speculation that central banks around the world will take additional action to provide some monetary stimulus amid worrying signs of faltering growth. EU central bank chief Mario Draghi provided the clearest indication yet that his institution may act as soon as March.
It’s a little premature to say a rally is on, but oil prices are going to have to rise at some point with so much production currently underwater. CMC Markets, a UK-based trader, says that $34 is the next resistance point for oil, from a technical perspective. If oil can break above $34 per barrel, then the rally could have some momentum.
At the World Economic Forum in Davos, Nigeria’s oil minister Emmanuel Kachikwu said that he expects oil to rise to $40 by the end of the year. Oil prices could get worse in the short-term, but “the second half of this year holds more promise,” he said.
Insure-Digest
Adding to the upsurge was growing speculation that central banks around the world will take additional action to provide some monetary stimulus amid worrying signs of faltering growth. EU central bank chief Mario Draghi provided the clearest indication yet that his institution may act as soon as March.
It’s a little premature to say a rally is on, but oil prices are going to have to rise at some point with so much production currently underwater. CMC Markets, a UK-based trader, says that $34 is the next resistance point for oil, from a technical perspective. If oil can break above $34 per barrel, then the rally could have some momentum.
At the World Economic Forum in Davos, Nigeria’s oil minister Emmanuel Kachikwu said that he expects oil to rise to $40 by the end of the year. Oil prices could get worse in the short-term, but “the second half of this year holds more promise,” he said.
Insure-Digest
Wednesday, January 13, 2016
Wall Street: forget about market corrections - the party is over - "this is a meltdown for Wall Street folks"
Year to end a -7.31% drop. Wall Street might have been able to fool some people, but they can't fool investors all the time.
The party is over folks, at least for the time being, and nothing seems to be on the horizon to be a reason for optimism.
EU-Digest
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