Kuwait

Saudi Arabia Vs. Russia: The Next Oil Price War

International oil markets could be heading towards a new war, as leading OPEC and non-OPEC producers are vying for increased stakes.  Until 2015, Russian oil supplies had been dominating European markets, as most OPEC producers had no interest in European demand. Due to new players entering Asian markets, and the lower demand in the U.S., the Oil Kingdom is now looking for a confrontation.

Rig Count Continues To Threaten Oil Price Recovery, Saudis Cut Prices To Asia (Again)

For the 11th week in a row, the number of US oil rigs rose (up 10 to 662 - the highest since September 2015). And worse still, there are thousands of drilled shale wells are sitting idle, unfracked and uncompleted. That supply sitting on the sidelines will put downward pressure on any new oil price rally... which may explain why the Saudis have just cut prices to Asia once again.

RBC: Two Things Are Behind Today's Rally

"With the ‘hawkish Fed/dovish ECB’ scenario, the USD is experiencing ‘signs of life.’  In turn, this could in fact reinvigorate ‘US domestic reflation’ trades which had been on life-support or unwound outright over the prior weeks / months."

Goldman Warns OPEC Production Cut Extension Will Backfire, Result In Lower Prices

"Oil prices above $60/bbl would prove self defeating in our view given the flattening of the oil cost curve and the unprecedented velocity of the shale supply response." A decision to extend cuts, "would only exacerbate the backwardation that we project... and created downside risk to our 2018 $58/bbl forecast."

Frontrunning: March 27

  • Markets Slide on Doubts that Trump Can Deliver (BBG)
  • Dollar hits four-month low as Trump trade deflates (Reuters)
  • These Charts Show Alarm Bells Ringing on Trump Trade (BBG)
  • White House may court Democrats on tax reform (Reuters)
  • Republicans Could Have Another Fight Over Tax Overhaul (WSJ)
  • 'Religious left' emerging as U.S. political force in Trump era (Reuters)

Global Stocks Slide, S&P Futures Tumble Below 50DMA As "Trump Trade" Collapses

Global stocks are lower across the board to start the week, as concerns about Trump's administration to pull off a material tax reform plan finally emerge, pressuring S&P futures some 20 points lower this morning, following European and Asian shares lower, while crude oil prices fall unable to find support in this weekend's OPEC meeting in Kuwait where a committee recommended to extend oil production cuts by another 6 months.

Pepe Escobar: Daesh, Creature Of The West

"According to Saudi intelligence, Daesh was invented by the US government – in Camp Bacca, near the Kuwait border, as many will remember - to essentially finish off the Shiite-majority Nouri al-Maliki government in Baghdad..."

Not Just The US: UK Bans Use Of Laptops On Flights From 6 Mostly Muslim Countries

One day after the Trump administration imposed a ban for carry-on electronic devices on planes coming to the US from 10 airports in mostly Muslim countries following unspecified terrorism threats, moments ago the UK issued a similar ban, restricting the use of carry on laptops and tablets for inbound flights for flights originating in the following nations: Turkey, Lebanon, Jordan, Egypt, Tunisia, and surprisingly, Saudi Arabia.