OPEC

Will The Oil Price Slide Lead To A Credit Crunch For U.S. Drillers?

The recent drop in oil prices, which has almost wiped out the price gains since OPEC announced its supply-cut deal, is coming just ahead of the spring season when banks are reassessing the credit lines they are extending to support drillers’ growth plans.

WTI/RBOB Spike On Inventories Data, Despite Production Surge To 14 Month Highs

WTI and RBOB prices have drifted higher after modest weakness following API's inventory data overnight and then spiked after DOE reported a smaller than expected crude build, and bigger than expected gasoline and distillate draws. Following the lage rig count data, US crude production rose once again to its highest since Feb 2016.

Visualizing NAFTA's Mixed Track Record Since 1994

Bill Clinton: “NAFTA means jobs. American jobs, and good-paying American jobs..."

Ross Perot: "Americans will hear a giant 'sucking sound' as jobs go south of the border to Mexico."

RBOB Tumbles After Lower Than Expected Gasoline Draw

After an early spike on Libya production fears and OPEC production cut extension hope, WTI and RBOB faded all day on dollar strength ahead of the API data. The trend of builds in Crude and draws in gasoline and distillates continued but the gasoline draw was notably less than expected and has sparked selling in RBOB.

4 Factors Driving Oil Prices This Summer

Uncertainty is dominating today’s oil markets, with production cuts, ballooning inventories and a rising rig count all adding to oil price volatility. And as the summer driving season approaches and oil companies return to their projects here are four key factors to watch closely.

Iron Ore Tumbles As China Steel-Producing Hub Found Lying About Production Cuts

China's top steel producing province Hebei was ordered by China's central government to investigate firms in Tangshan that have "restricted but not cut production, restricted production but not actually cut emissions, and cut capacity but actually increased output," according to a provincial notice dated March 25.

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.

Watch These Geopolitical Flashpoints Carefully

The globalists tend to use what I call a “scattershot effect” when it comes to creating or managing chaos. They set the stage for multiple flashpoints around the world and wait to see which of them works and which of them fails. Not only this, but one successfully executed flashpoint has the ability to give birth to dozens of new flashpoints. They tend to spread, like a cancer. That said, some flashpoints are more dangerous than others.