Category Archives: Oil

OPEC leader vows not to cut oil output even if price hits $20

The Saudis never ‘cut production’ They just set price and let the world buy what it wants at their price. No one seems to know that. As no one ever asks if they are going to raise price. OPEC leader … Continue reading

Posted in Oil |

Wither exports and oil rigs

The narrative is that as foreign oil producers see their incomes fall, directly or indirectly they will fewer US goods and services, aka, US exports. Just read the highlighted part about exports: Kansas City Fed Manufacturing Index Highlights Tenth District … Continue reading

Posted in Oil |

Bankers See $1 Trillion of Zombie Investments Stranded in the Oil Fields

Wonder if Janet factored this in? Bankers See $1 Trillion of Zombie Investments Stranded in the Oil Fields By Tom Randall Dec 18 (Bloomberg) — There are zombies in the oil fields. After crude prices dropped 49 percent in six … Continue reading

Posted in Oil |

Yellen vs Mosler

At her press conference Janet Yellen stated that the net effect of the drop in oil prices is that of a tax cut, and therefore supportive of US output and employment. My take is that the cuts in spending due … Continue reading

Posted in Fed, Oil |

oil priced in rubles chart

Any coincidence that oil priced in rubles hasn’t moved all that much recently? ;)

Posted in Oil, Russia |

is the drop in oil price a positive or negative?

So most every mainstream analyst has called the drop in crude prices a ‘massive unambiguous positive’ for the US economy. Seems stocks don’t agree…

Posted in Equities, Oil |

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 … Continue reading

Posted in Banking, CBs, Comodities, Credit, Currencies, Fed, GDP, Inflation, Interest Rates, Oil |

A bit more on construction, oil, and deflation

Check out these charts!: Jobs: Shale States vs Non-Shale States By Tyler Durdan

Posted in Employment, Oil |

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. … Continue reading

Posted in Comodities, Economic Releases, Employment, GDP, Oil |

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 … Continue reading

Posted in Comodities, Housing, Oil |