• 3 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 5 minutes CoV-19: China, WHO, myth vs fact
  • 8 minutes Question: Why are oil futures so low through 2020?
  • 11 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 8 hours “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 20 mins Question - What if there are no buyers for Chevron's Appalachia Assets?
  • 9 hours Energy from thin air?
  • 20 mins Blowout videos
  • 14 hours OIL trades as if the virus is a 1 quarter event. As if it's Containable, Reversible and Temporary. Is it ?
  • 1 day Hey NYC - Mayor De Blasio declares you must say goodbye to fossil fuels. Get ready to freeze your Virtue Signaling butts off.
  • 3 hours Can LNG Kill Oil?
  • 1 day Fast-charging, long-running, bendy energy storage breakthrough
  • 1 day Foxconn cancelled the reopening of their mfg plants scheduled for tomorrow. Rescheduled to March 3rd. . . . if they're lucky.
  • 2 days "For the Public's Interest"
  • 16 hours Coronovairus, Phase One Agreement, Lower for Longer
  • 2 days Cheap natural gas is making it very hard to go green
Alt Text

Chinese Refinery Run Rates Fall To 6-Year Low

Chinese oil refiners have cut…

Alt Text

European Gas Prices Set To Slump

Gas is in a bear…

Matt Smith

Matt Smith

Taking a voyage across the world of energy with ClipperData’s Director of Commodity Research. Follow on Twitter @ClipperData, @mattvsmith01

More Info

Premium Content

Commodity Markets In Distress As Oil Rout Continues

One hundred and eleven years after the birth of Count Basie, and the ongoing rout in the crude complex is in full swing today. Downhill one-way traffic continues amid headlines such as ‘No End in Sight for Oil Glut‘ and ‘Oil Poised for Longest Weekly Losing Streak Since 1986 Amid Glut‘. As the headlines get more apocalyptic, and the price projections get lower (this week: $15 oil, no, $10 oil), the more it feels like we are approaching a turning point. Or at least a whipsaw.

Looking at the overnight data releases, China has served to endorse the current mood of doom and gloom via a preliminary manufacturing print of prodigiously downbeat proportions. A print of 47.1 was seen, which was considerably lower than last month’s 47.8, and shy of the consensus of 47.7. It is the lowest print since March 2009 (hark, the belly of the great recession). Related: Hungry Venezuela Eyes $40 Billion Offshore Discovery In Guyana

China Caixin Preliminary PMI (source: investing.com)

In other preliminary releases, Eurozone manufacturing on the aggregate came in above consensus (and in line with last month’s level), aided by a decent number from Germany, but held in check by a miss from France (showing increasing contraction to boot). Eurozone services data on the aggregate also beat consensus, ticking higher on the prior month. Related: Supply, Demand Equilibrium Further Away Than Ever Before

Weakness across the commodity complex as a whole continues to be an ongoing theme in global markets. The below chart illustrates the losses seen in the stock prices of various oil and mining companies, with Bloomberg estimating that $2.05 trillion has been wiped off their market caps. Meanwhile, the Bloomberg Commodity Index of 22 raw materials has dropped to its lowest level since 2002.

While US refiners continue to make hay while the sun shines amid super-strong crack spreads, US producers are feeling increasing pain as oil prices continue to drop. US oil and gas companies raised $44 billion in debt in the first half of this year, the most since 2007, in an effort to maintain liquidity amid the oil price drop. As prices retest 6-year lows, producers once again see their financial situations heading south. Related: Oil Prices Must Rebound. Here’s Why

On the whole, 62 US oil and gas companies own $235 billion of debt, and at least 10% of that is at a distressed level. JPM Morgan has set aside $140 million for potential write-downs in the coming months, with other banks doing the same. All is looking rather ominous. While oil producers get pummeled, miners get mauled:

By Matt Smith

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News