• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 9 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 38 mins Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 38 mins Wonders of Shale- Gas,bringing investments and jobs to the US
  • 3 hours Rural and Conservative: Polish Towns Go 'LGBT free' Ahead Of Bitter European Election Campaign
  • 55 mins IMO2020 To scrub or not to scrub
  • 3 hours Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? To get Jared (Frisch School 2.8 GPA) a Mideast win with peace deal ? China greatest threat next 50 years.
  • 8 hours Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 3 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
  • 1 hour Crude oil?
  • 4 hours Greenpeace Blocks BP HQ
  • 2 hours Shale to be profitable in 2019!!!
  • 10 hours DUG Rockies: Plenty Of Promise, Despite The Politics
  • 39 mins California's Oil Industry Collapses Despite Shale Boom
  • 14 hours Get First Access To The Oilprice App!
  • 2 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
Alt Text

OPEC+ Top Priority: Don’t Crash Oil Prices

OPEC+ is reportedly considering increasing…

Alt Text

U.S. Oil Rig Count Dips To 14-Month Low

The the number of active…

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

Trending Discussions

Kuwaiti Oil Minister: No OPEC Meeting Before December

While it is a quiet start to the week on the economic data front, the crude complex is having a boisterous beginning. Oil is charging lower as the dollar rises and risk aversion soars. Hong Kong and South Korea are closed for holidays, while the only data point of note out of Asia was a Japanese leading indicator, which was above consensus, but below last month’s number – indicating further softening ahead for the world’s third largest economy. Across to Europe, and both French and Italian confidence numbers came in better than expected.

Here in the U.S. we have had personal spending data, which showed a decent 0.4% increase in August (pssst, we’re down to $2.29/gallon on the national average for gasoline), while inflation data (PCE core indicator) has ticked slightly higher YoY, up to 1.3%, to ease deflationary concerns in the U.S. Nonetheless, despite this seemingly supportive flow of data, an air of gloom hangs over financial markets. Related: Exxon CEO: Alaska Is Its Own Worst Enemy

As the contango starts to widen once more for the six-month spread for Brent, the drumbeat for storing oil at sea begins again. The spread was so wide back in 2008 at over $10 that it earned the name, ‘super-contango‘; currently that spread is much less, but according to estimates, a spread of over $4/barrel for a quarter makes it an attractive option.

OilContango

(Click Image To Enlarge)

In other bits and bobs, IMF head Christine Lagarde says global economic growth at 3.3% this year isn’t a realistic expectation anymore, citing concerns about emerging markets, while saying 3.8% growth for next year appears unrealistic too. Related: EV Market Has An Unlikely Backer

Meanwhile, according to reports, Saudi Arabia has withdrawn between $50 billion and $70 billion in the past six months from global fund managers to repatriate cash to help fund its deficit, as well as reinvest it in less risky investments. Saudi Arabia has seen foreign reserves drop by $73 billion in the last year as oil prices have fallen. Lest we forget, oil accounts for 80% of the country’s budget revenues and 45% of its GDP. All the while, Kuwait’s oil minister has said there is no need for an OPEC meeting prior to the December one. Related: Is This The Mining Equipment Sector’s Last Act?

Data flow will pick up speed from here to build to a crescendo on Friday. We charge through quarter-end on Wednesday – with oil inventory data to boot – before Thursday delivers global manufacturing prints, before we finally reach Nonfarm Friday and official U.S. employment data. It’s going to be a fun week.

By Matt Smith

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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