Literally days after he predicted oil would double from its $26 "bottom", Pickens told Bloomberg that he has cashed out.
Do you remember when Greenspan was befuddled when natural market rates wouldn't obey his commands in the previous decade? Well, I sure hope Yellen does. Even if she doesn't the high yield financed US energy probably won't be around long enough to find out.
- Oil lifts stocks off lows, yen and low-risk debt in favor (Reuters)
- Yes, this agaim: Oil gains after Russia says open to talking with OPEC (Reuters)
- More forecasts: Oil Prices Could Jump 50% by the End of 2016 (BBG)
- New Risks for Trump After Iowa Loss (WSJ)
- Yuan Gap Widens Again as Depreciation Bets Swamp PBOC Fightback (BBG)
Just 10 days after "Moody's Put Over Half A Trillion Dollars In Energy Debt On Downgrade Review", moments ago S&P decided it wanted to be first out of the gate with a wholesale downgarde of the US energy companies, and announced that it was taking rating actions on 20 investment-grade companies, including 10 downgrades as follows: Chevron Corp.; EOG Resources; Apache Corp; Devon Energy Corp; Hess Corp; Marathon Oil Corp; Murphy Oil Corp; Continental Resources; Hunt Oil; Southwestern Energy.
"In the first quarter of 2016, the corporation will continue to acquire shares to offset dilution in conjunction with its benefit plans and programs, but does not plan on making purchases to reduce shares outstanding."
It certainly does feel like groundhog day today because while last week's near record oil surge is long forgotten, and one can debate the impact the result of last night's Iowa primary which saw Trump disappoint to an ascendant Ted Cruz while Hillary and Bernie were practically tied, one thing is certain: today's continued decline in crude, which has seen Brent and WTI both tumble by over 3% has once again pushed global stocks and US equity futures lower, offsetting the euphoria from last night's earnings beat by Google which made Alphabet the largest company in the world by market cap.
If there were any concerns that retailers and other vendors of goods and services are hunkering down on their ad spending, those fears can be safely swept under the rug because just days after Facebook's dramatic beat, moments ago GOOG likewise slammed expectations by beating massively both on the top and bottom line.
It didn't take much to fizzle Friday's Japan NIRP-driven euphoria, when first ugly Chinese manufacturing (and service) PMI data reminded the world just what the bull in the China shop is leading to a 1.8% Shanghai drop on the first day of February. Then it was about oil once more when Goldman itself said not to expect any crude production cuts in the near future. Finally throw in some very cautious words by the sellside what Japan's act of NIRP desperation means, and it becomes clear why stocks on both sides of the pond are down, why crude is not far behind, and why gold continues to rise.
- China shares end at 14-month lows after late selling frenzy (Reuters)
- China Dec gold imports through Hong Kong highest since 2013 (Reuters)
- China Contagion Fades as European Stocks Pare Drop, Oil Rises (BBG)
- Apple set for slowest ever iPhone sales growth (Reuters)
- Saudis, Russia Seen by Iraq as More Flexible on Oil-Output Cuts (BBG)
- China Probes NEV sector for subsidy fraud (China Daily)
- Global Stocks Face Fresh Losses (WSJ)
- European stocks lick wounds after mauling, oil steady (Reuters)
- Hang Seng Index Sinks Below Net Assets for First Time Since 1998 (BBG)
- U.S. Hedge Funds Boast Lower Losses as Markets Tumble Further (NYT)
- Deutsche Bank Drops as Investment Bank Revenue Concerns Mount (BBG)
- Islamic State Uses Syria’s Biggest Dam as Refuge and Potential Weapon (WSJ)
Warren Buffett has been consistently wrong on oil, but many experts are calling a bottom on oil prices now that the investor extraordinaire has upped his ante in Phillips 66, betting that he can’t be wrong three times in a row.
Russia has just taken significant steps that will break the present Wall Street oil price monopoly, at least for a huge part of the world oil market. The move is part of a longer-term strategy of decoupling Russia’s economy and especially its very significant export of oil, from the US dollar, today the Achilles Heel of the Russian economy.
While the media attention was directed to the shale oil boom in the US, the Saudis created a giant offshore oil project called Manifa. With one single project Manifa added 1 million barrels a day to the world oil glut. Manifa will expand its capacity the coming year, adding a further 500 million barrels a day to world markets.
But here is a giant freebie for all those stupid, clueless oil executives out there in North America.
"Saudi Aramco confirms that it has been studying various options to allow broad public participation in its equity through the listing in the capital markets of an appropriate percentage of the Company’s shares and/or the listing of a bundle its downstream subsidiaries."