Comodities Archive

Saudi output

Saudis set price and let their clients buy all they want at the price settings, so their output continually adjusts to equal global demand net of all others producers. What’s clear is that said net global demand has fluctuated very little, obviating the notion that the price collapse was somehow a function ...Read More

oil related jobs at risk?

Lots of oil related jobs about to vanish seems: ...Read More

macro update

Let’s look at the Saudi price cuts in the context of the accounting identity that states that for everyone who spent less than his income, another must must have spent more than her income or that much output would not have been sold. ;) The price cut itself shifts income from producers ...Read More

Mosler RT interview part 2

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Oil futures show spot shortage, not surplus, Cuts, PCR on jobs

When there is a surplus of physical supply the nearby contracts trade at lower prices, with prices going higher as you go further out to discount storage charges. That is, with a physical glut of supply the storage facilities fill up and the price of storage goes up. Likewise, when spot is ...Read More

Putin buying gold in size?

If this is true Putin is even dumber or more subject to special interest influence than I thought. Someone please tell me if it isn’t! ...Read More

Comments on crude pricing, the economy, and the banking system

Crude pricing The Saudis are the ‘supplier of last resort’/swing producer. Every day the world buys all the crude the other producers sell to the highest bidder and then go to the Saudis for the last 9-10 million barrels that are getting consumed. They either pay the Saudis price or shut the ...Read More

ADP, mtg purch apps, Productivity, ISM, oil and gas well permits

Remember, this is their forecast for Friday, not hard data from their subscribers: ADP Employment Report Highlights ADP’s estimate for private payroll growth for November is 208,000 vs the Econoday consensus for 225,000 and against a revised 233,000 for October. The corresponding Econoday consensus for Friday’s jobs report from the government is ...Read More

Crude break evens for drillers, construction spending

If you can buy oil cheaper in the fwd and futures markets why bother to drill for it? ;) Charts from Citi: Construction Spending Highlights Construction outlays rebounded significantly on public outlays and the private residential component. Construction spending jumped 1.1 percent in October after a 0.1 percent dip in September. Market ...Read More

personal income and consumption charts and comments, and a word on oil

This is after tax personal income not adjusted for inflation. Note that there was anticipation of an acceleration from the first quarter, but now it looks like the growth has slowed and rolled over: Here you can see how it was growing steadily, then shifted down when my payroll tax holiday expired, ...Read More