Ruble, Real Tumble As Oil Slumps On Weaker IEA Outlook

WTI Crude is tumbling this morning, breaking down below $56 following a monthly report Tuesday from the International Energy Agency that said 2017 price gains along with milder-than-normal winter weather are slowing demand growth. This drop is weighing on oil-producers with the Ruble and Real dropping most...

The IEA reduced its demand estimate for next year by 200,000 barrels a day to 98.9 million a day, according to projections in its report. Forecasts for demand growth next year also fell by 100,000 barrels a day to 1.3 million a day.

“The market balance in 2018 does not look as tight as some would like, and there is not in fact a new normal” that would buoy prices above $60, said the Paris-based agency.

“If you put two and two together, it shows that we are going to be a little bit oversupplied in 1Q,” Michael Loewen, a commodities strategist at Scotiabank in Toronto, said by telephone referring to the IEA report. “Traders in the market are focusing on that right now. We rallied too far, too quick.”

This oil move has pushed the Ruble down to 3-month lows...back over 60 Ruble per USD...

Comments

LawsofPhysics Tue, 11/14/2017 - 10:55 Permalink

Trying to determine the true "price" of anything in the absence of a mechanism for true price discovery is a fool's errand!!!! Technology does advance, but it advances much slower than baby-mommas can reproduce... Moreover, it takes a tremendous amount of capital, resources, and TIME to bring new technology to the market. Perhaps we shouldn't have bailed out all the useless fucks in banking and finance after all?Horrible waste of time capital and resources...Oh well,"Full Faith and Credit"same as it ever was.

Cafe Baghdad Tue, 11/14/2017 - 10:55 Permalink

We have all heard of Rothschild and Rockfeller, but ontop of them sits David Sassoon, master of asian opium. He was thrown out of Baghdad in 1812 and everything in the Middle East is about him regaining control. https://en.wikisource.org/wiki/Twentieth_Century_Impressions_of_Hongkong... Everybody works for him. Everyone in the USA and everyone in Europe. His son Abdullah anglicised Albert married Aline Caroline de Rothschild in 1887.

kavabanga Tue, 11/14/2017 - 11:13 Permalink

Broke resistance, going to test 61 again.Ruble Long-term, I believe we are in the beginning of 3rd 1-5 impulse wave, 1 and 2 displayed perfectly.maybe  69-71 area would be tested soon.

Money_for_Nothing Tue, 11/14/2017 - 11:19 Permalink

Increase supply significantly over demand and the market clearing price is below production costs. Obfuscate numbers and everyone is caught by surprise when this happens. Tax cuts need to happen sooner rather than later. We are in the midst of The Great Recession.

BritBob Tue, 11/14/2017 - 12:12 Permalink

Falklands Oil - worth a punt?By a ruling of the UN, Argentina will extend its maritime platform (Politica Argentina) ; New map of the maritime platform reaffirms the sovereignty of Malvinas with UN endorsement (ElCronista); Argentina enlarges its territory 35%, with a UN endorsement ...(La Capital).To add to this euphoric atmosphere the Argentine Foreign Minister stated, ''This is a historic opportunity for Argentina. We have taken a great step in the demarcation of the outer limit of our continental shelf; the most extensive boundary of Argentina and our border with humanity,'' Foreign Minister Susana Malcorra told La Nacion, which tomorrow will publicly announce the details of this resolution. (Susana Malcorra, quoted by Dinatale M, La Nacion, Argentina, 27 March 2016). But what is the truth...Argentina's Continental Shelf Claims and The UN CLCA Commission (1 page):-https://www.academia.edu/33898951/Argentinas_Continental_Shelf_Claims_-The_UN_CLCS_Commission