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Oil Rises From $40 After Dropping Into Bear Market on Oversupply
U.S. crude, gasoline inventory data forecast to show decline Stockpiles at highest seasonal level in at least two decades Oil rose in New York amid speculation the oversupply still weighing on global markets will diminish, even after prices fell into a bear market on Monday. Close all those tabs. Open this email. Get Bloomberg’s daily newsletter. Politics The latest political news, analysis, charts, and dispatches from the campaign trail. You will now receive the Politics newsletter Markets Everything you need to know about what’s moving markets, in your inbox daily. You will now receive the Markets newsletter Pursuits The coolest cars to drive, the latest gadgets to ogle, the hottest places to travel. You will now receive the Pursuits newsletter Game Plan Advice nobody tells you about getting ahead at work, school and life. You will now receive the Game Plan newsletter Futures gained 1.2 percent after dropping below […]
PIMCO Jumps On The Lower-For-Longer Bandwagon
Oil Tanker “Over the secular horizon, Oil prices are likely to remain low,” said the PIMCO’s Global Advisory Board (GAB), while assessing global economic trends, according to the PIMCO website . The GAB believes that the major factors that can keep prices down over the long-term are twofold: consistently high production by Saudi Arabia, and on the demand side, the board expects new technologies and a move towards green fuels to “slow oil consumption somewhat”. The GAB members included Dr. Ben Bernanke, former Chairman of the Federal Reserve, Dr. Gordon Brown, former UK Prime Minister and former Chancellor of the Exchequer, and Ng Kok Song, former Chief Investment Officer of the Government of Singapore Investment Corporation. A few of the points mentioned by the GAB don’t add up—let’s analyze both the demand and the supply situation. High oil production by Saudi Arabia Saudi Arabian oil production has gone up […]
No One Knows How Much Oil Is Being Stored Around the World
Many countries keep their reserves a secret, meaning the price of oil is based on a huge amount of guesswork. Peak oil, if it even exists , is very much a moving target . But so, it turns out, is measuring how much oil is already above ground, sitting in the holds of ships and in storage facilities around the world. It’s not that humanity is fundamentally incapable of measuring how much oil we are extracting—it’s that many countries don’t report their inventories. Take China, for example, which has been buying up far more oil than it appears to be using. As the Wall Street Journal reports , analysts think that 160 million barrels of surplus, enough to supply the country for two weeks, has gone to one of two places: either commercial storage, or to build up the nation’s strategic oil reserves. If it’s the latter, China’s demand […]
Saudi Arabia Seen Stepping Up Fight Against Bank Cash Crunch
Kingdom takes measures to shore up economy amid low oil prices Banks face liquidity squeeze as government pulls deposits Saudi Arabia may be embarking on a new phase in its efforts to stave off the worst of a cash crunch among its banks. The kingdom’s central bank, known as SAMA, offered domestic lenders about 15 billion riyals ($4 billion) in short-term loans at a discounted rate at the end of June to help ease liquidity constraints, people familiar with the matter said on Sunday. The step came less than six months after SAMA allowed banks to lend a greater percentage of deposits. Saudi Arabia is taking unprecedented steps to shore up its finances as the collapse in crude prices hobbles domestic banks, which hold 2.26 trillion riyals in assets, in a country that gets more than 70 percent of its revenue from oil. SAMA is seeking to stimulate borrowing […]
Venezuelan Credit Dashboard: $726 Million Comes Due in August
Oil price starts to decline again as heavy payments loom Venezuela, which has the largest crude reserves on the planet, has defied predictions of default since the oil collapse started in 2014 and analysts are split as to how long the nation of 30 million can hold out. With that in mind, Bloomberg is taking a close look each month at some of the key components that may determine its fate. Debt Payments The government and state oil company Petroleos de Venezuela SA need to pay $726 million this month after lighter payments in June and July, according to data compiled by Bloomberg. Attention will now start to shift toward the last quarter of the year, when interest payments totaling almost $5 billion come due. Whether or not Venezuela can avoid a default may depend on if the government and PDVSA […]
