Energy Archive

Saudis to pump 10 million bpd

The Saudis don’t sell in the spot markets, they only post prices to refiners and then take orders at those prices. That is, they post price and let quantity vary. So the only way they could definitively get to 10 million bpd would be to change policy and sell in the spot ...Read More

Energy drilling collapsing

[Skip to the end] This is what happens with an inventory liquidation. Any pickup in world demand looks likely to drive up energy prices in short order. [top] ...Read More

June 9 Bernanke speech

[Skip to the end] Outstanding Issues in the Analysis of Inflation Nonetheless, much remains to be learned about both inflation forecasting and inflation control. In the spirit of this conference, my remarks this evening will highlight some key areas where additional research could help to provide a still-firmer foundation for monetary policymaking. ...Read More

Bernanke on inflation expectations

[Skip to the end] Elevated inflation expectations are unacceptable to a mainstream Central Banker, and Bernanke seems to be clearly telling us we’ve reached his limits. To get ahead of the ‘inflation curve’ will mean interest rates of at least the 5.25% level of last August, when the FOMC didn’t cut because ...Read More

UBS: China’s energy imports soar by the back door!!!!

[Skip to the end] Report by Andrew at UBS LIMITED China – You will have seen in the FT that China plans to encourage its agricultural industry to start buying up land in Africa and Latin America to grow crops on for the Chinese market. Last year the Chinese National Development & ...Read More

Bloomberg: ‘Silent Famine’ as Food Soars

Seems they still think it is about money. Probably an actual shortage at this point. The political response will be to give people more funds to buy food that does not exist and drive prices ever higher. `Silent Famine’ as Food Soars, WFP Warns by Jason Gale and Paul Gordon (Bloomberg) A ...Read More

Inflation, growth, and Fed policy

Stocks up big, oil up big, dollar down big, and interest rates lower. How does this happen? Review Twin themes remain weakness inflation Sources of weakness Shrinking gov budget deficit caused the financial obligations ratio to get too high by Q2 2006 to support the private sector credit growth needed to sustain ...Read More

Friday mid day

Food, crude, metals up, dollar down, inflation up all over the world, well beyond CB ‘comfort levels.’ Nov new home sales continue weak, though there are probably fewer ‘desirable’ new homes priced to sell, and with starts are down the new supply will continue to be low for a while. The December ...Read More

Saudi/Fed teamwork

Looks like markets are still trading with the assumption that as the Saudis/Russians hike prices the Fed will accommodate with rate cut. That’s a pretty good incentive for more Saudi/Russian oil price hikes, as if they needed any! Likewise, the US is a large exporter of grains and foods. Those prices are ...Read More