"Trump’s remark raises another interesting question: namely, how much of a “shithole” is our own country these days? I would avouch, contrary to the limp narrative of boom times, that the USA is visibly whirling around the drain in just about every way that matters."
Just as we suggested, US oil rig counts surged last week, tracking the lagged uptick in WTI prices and suggesting production's upward path will continue (after last week's weather-impacted drop)... will shale show restraint this time?
"Donald Trump rode to the White House in part on the promise of an economic revival at home, largely by reversing the massive deficits piling up... A year later, there is an indication that this imbalance has increased against the U.S. and in favor of its trading partners..."
Wells just reported that the all important for the US housing market Mortgage Applications pipeline tumbled by a whopping 23% in Q4 to just $23 billion, below the lows hit in 2013, and the lowest since the financial crisis.
Following deflationary prints in import prices and producer prices, core consumer prices came in modestly hotter than expected. Core CPI printed +1.8% YoY - highest since April 2017 - as shelter costs re-acclerate.
"...if there is one thing 160 years of the oil age teaches us, there is no such thing as a mid-range balancing point in oil markets. Everyone either rushes to one side of the ship or the other, almost always at the wrong time."