GLOBAL MARKETS


Live World Indices are powered by Investing.com

Sunday, 7 July 2019

Energy #Crisis Concerns As #OPEC Production Dips To 2014 Low

"In May, OPEC’s oil production had dropped to a 2015 low of 30.17 million bpd, as a major 200,000-bpd increase in Saudi Arabia’s production was unable to offset an even larger production decline in Iran"

Image result for opec cartel members

OPEC Oil Production Dips To 2014 Low


OPEC’s crude oil production dropped to below 30 million bpd in June, down by 170,000 bpd from May and the lowest monthly output since April 2014, as higher Saudi oil supply was insufficient to compensate for declines in the cartel members subject to U.S. sanctions, Iran and Venezuela, the monthly Reuters survey showed on Friday.
OPEC pumped 29.60 million bpd in June, according to the Reuters survey that tracks supply to the market from shipping data and sources at OPEC, oil companies, and consulting firms. 

Saudi Arabia, OPEC’s largest producer, boosted supply by 100,000 bpd in June over May, to 9.8 million bpd, the survey showed.



Despite the increase, Saudi Arabia was comfortably below its 10.311-million-bpd cap under the OPEC+ deal as it had been overachieving in its share of the cuts by 500,000 bpd in the previous months.


LEARN MORE

ARE CUTS NEEDED FOR HIGHER PRICES?




Monday, 1 July 2019

#Shale Oil Stocks Are #Market Dogs


"The energy sector has made up almost a quarter of all U.S. bankruptcies in the past year"



Shale Patch Struggles 5 Years After Crude Collapse


|
Rachel Adams-Heard
|


Bloomberg) -- It’s been five years since crude started a precipitous drop that eventually saw it hit a low of $26 a barrel. While prices have recovered some of the lost ground, shale producers are still feeling the pain.
Oil’s 76% collapse from almost $108 a barrel in June 2014 was the worst plunge since the financial crisis of 2008. Below are some data points on how the industry has fared since.
In 2014, oil and gas companies made up almost 11% of the S&P 500 Index. Now, that’s just over 5% as some investors appear to have given up on the sector.

Shale Patch Struggles 5 Years After Crude Collapse

Shareholder antipathy stems at least in part from questions over the profitability of shale drilling. While the five big, publicly traded integrated major producers -- BP Plc, Chevron Corp., Exxon Mobil Corp., Royal Dutch Shell Plc and Total SA -- resumed generating free cash flow as a group in 2017, independent U.S. drillers only became cash-flow-positive (based on an average of 12 such companies compiled by Bloomberg) in 2018 -- and they were back in the red in the first quarter of 2019.


LEARN MORE

OIL: BOOM OR BUST


Monday, 24 June 2019

Fears Of #Iran Conflict Send #Oil Prices Higher



There is no doubt that a severe disruption to the transit of oil through this vulnerable route would be extremely serious,” said consultancy FGE Energy in a note.

U.S. oil soars 10% in week on fears of U.S.-Iran conflict


NEW YORK (Reuters) - Oil futures rose 1% on Friday, with U.S. crude up 10% in the week and global benchmark Brent gaining 5%, on fears the United States could attack Iran and disrupt flows from the Middle East, which provides more than a fifth of the world’s oil output.

U.S. gasoline futures, meanwhile, jumped around 4% following a massive fire at Philadelphia Energy Solutions’ refinery in Philadelphia, the largest on the U.S. East Coast.
“The heightening of tensions between the United States and Iran has evolved as primary price motivator in spiking oil values,” Jim Ritterbusch of Ritterbusch and Associates said in a note.
While the rise in U.S.-Iranian tensions has largely driven the crude price gains, analysts said an early July meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies to reassess production targets, a potential softening of trade tensions between the United States and China and the refinery fire were also supporting prices.
LEARN MORE
POSSIBLE IMPACTS








Monday, 17 June 2019

#Oil Demand Slows, #Global Trade War Tensions Mount


"Surging U.S. supply as well as gains from Brazil, Canada and Norway would contribute to an increase in non-OPEC supply of 1.9 million bpd this year and 2.3 million bpd in 2020" 

Image result for reuters logo


 Image result for trade war tension us china

IEA cuts 2019 estimate for oil demand growth on global trade worries


 LONDON (Reuters) - The outlook for oil demand growth in 2019 has dimmed due to worsening prospects for world trade, the International Energy Agency (IEA) said on Friday, although stimulus packages and developing countries should boost growth going into 2020. 


The Paris-based IEA, which coordinates the energy policies of industrial nations, revised down its 2019 demand growth estimate by 100,000 barrels to 1.2 million barrels per day (bpd), but said it would climb to 1.4 million bpd for 2020. 

“The main focus is on oil demand as economic sentiment weakens ... The consequences for oil demand are becoming apparent,” the IEA said in its monthly oil report. 

“The worsening trade outlook (is) a common theme across all regions”, it added. 

 Image result for trade war tension us china


The oil demand growth forecast assumes the maintenance of U.S. and Chinese tariffs imposed on goods in 2018, but the IEA said it had not factored in further U.S. tariffs announced in May.



Learn More

TRADE WAR ESCALATES!

 

Monday, 10 June 2019

Ultimately REAL PHYSICAL #Economic #Growth Stops, And Then...

"What economists around the world get wrong about the future."

Nubes, 2011.


THE FALLACY OF ENDLESS ECONOMIC GROWTH


The idea that economic growth can continue forever on a finite planet is the unifying faith of industrial civilization. That it is nonsensical in the extreme, a deluded fantasy, doesn't appear to bother us. We hear the holy truth in the decrees of elected officials, in the laments of economists about flagging GDP, in the authoritative pages of opinion, in the whirligig of advertising, at the World Bank and on Wall Street, in the prospectuses of globe-spanning corporations and in the halls of the smallest small-town chambers of commerce. Growth is sacrosanct. Growth will bring jobs and income, which allow us entry into the state of grace known as affluence, which permits us to consume more, providing more jobs for more people producing more goods and services so that the all-mighty economy can continue to grow. "Growth is our idol, our golden calf," Herman Daly, an economist known for his anti-growth heresies, told me recently.
Image result for children of the damned
In the United States, the religion is expressed most avidly in the cult of the American Dream. The gatekeepers of the faith happen to not only be American: The Dream is now, and has long been, a pandemic disorder. Growth is a moral imperative in the developing world, we are told, because it will free the global poor from deprivation and disease. It will enrich and educate the women of the world, reducing birth rates. It will provide us the means to pay for environmental remediation—to clean up what so-called economic progress has despoiled. It will lift all boats, making us all rich, healthy, happy. East and West, Asia and Europe, communist and capitalist, big business and big labor, Nazi and neoliberal, the governments of just about every modern nation on Earth: All have espoused the mad growthist creed.



LEARN MORE




WHY DON'T WE APPLY EXPONENTIALS TO OUR EXISTENTIAL LIMITS?


Twitter

Twitter
Follow Here

Search This Blog