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Yellen Says Latest Jobs Report Raises Questions About Economic Outlook
Janet Yellen speaks at a World Affairs Council of Philadelphia event on Monday. Federal Reserve Chairwoman Janet Yellen affirmed Monday that the central bank won’t be raising short-term interest rates until new uncertainties about the economic outlook are resolved. Her comments, delivered at the World Affairs Council of Philadelphia, echoed conclusions investors drew Friday after the release of disappointing job market data . Ms. Yellen and other officials still believe they will be gradually lifting rates because they expect the economy to improve. However, a rate increase at the Fed’s policy meeting next week is now effectively off the table. An increase in July is possible but has become less likely, and a September move is possible if economic data show the economy is rebounding by then. Her comments represented a shift from less than two weeks ago, when she confidently said a strengthening meant the Fed likely would […]
U.S. Crude Exports Hit 96 Year High
Mid Continent Well U.S. crude oil exports rose to 591,000 barrels per day in April, up 83,000 barrels from March, according to new data from the U.S. Census Bureau on Friday. The total figures are the highest since at least 1920, Rigzone reports. A majority of the crude – 324,000 bpd of it – went to Canada, 90,000 more went to Curacao and 36,000 others went to the Bahamas. The figures come almost six months after the U.S. government lifted restrictions on crude exports. Related: Does Iran Have The Upper Hand In OPEC Oil War Three months after the authorities lifted the four-decade ban, the U.S. had exported less in the first quarter of 2016 than it did over the same period the year before, when the ban was still in place. The immediate beneficiaries of the ban suspension are gas and oil companies such as Chevron and Exxon […]
Regulators Fear $1 Billion Coal Cleanup Bill
Photo An idled West Virginia coal facility. Officials fear bankrupt coal companies are not setting aside enough to clean up Appalachia’s polluted rivers and mountains. Regulators are wrangling with bankrupt coal companies to set aside enough money to clean up Appalachia’s polluted rivers and mountains so that taxpayers are not stuck with the $1 billion bill. The regulators worry that coal companies will use the bankruptcy courts to pay off their debts to banks and hedge funds, while leaving behind some of their environmental cleanup obligations. The industry asserts that its cleanup plans — which include turning defunct mines back into countryside — are comprehensive and well funded. But some officials say those plans could prove unrealistic and falter as demand for coal remains weak. The latest battle is over Alpha Natural Resources , once a high-flying coal company that borrowed hundreds of millions when the coal market was […]
Saudi Arabia’s Cabinet Approves Economic Reform Package
Saudi Arabia early Tuesday presented a comprehensive package of reforms aimed at boosting non-oil revenues while reducing state handouts that have weighed on the kingdom’s economy. The initiative, called the National Transformation Plan, offers details on how the ruling monarchy plans to achieve long-term economic change in an era of cheap oil. The overall target is ambitious: Riyadh expects non-oil revenues to more than triple by 2020 to 530 billion Saudi riyal ($141.32 billion). Developing sectors like mining and increasing non-oil exports are part of the plan. But so are more painful measures, such as the reduction of subsidies on water and electricity. The government said it expects the nation’s debt-to-GDP ratio to widen to 30% by 2020 from 7% today. The plan, dubbed NTP, was drafted by the kingdom’s Council for Economic and […]
wsj.com
Millions of New Vehicles in India Give Oil Prices a Lift
India’s rapid economic expansion—especially its growing appetite for cars—has fueled that nation’s oil consumption. The latest rebound in oil prices is getting help from an unexpected source: surging demand from Asia’s emerging economies. That surge is helping offset slower growth in developed countries and giving more potency to the effect of a recent string of outages that have curbed supply. India, especially, is helping to up the slack from struggling economies, whose lackluster growth has contributed to oil prices’ long slide. The durability of India’s demand could be a big factor in whether oil’s recent run to a six-month high over $50 a barrel can be sustained. “The big news in demand is growth in India, which now rivals China,” said Daniel Yergin, vice chairman of consulting firm IHS. “India really is seen as the growth market for oil.” India is fueling a rapid economic expansion, with consumption hitting […]
