• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 1 day The Discount Airline Model Is Coming for Europe’s Railways
  • 14 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 23 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 9 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 1 hour Starvation, horror in Venezuela
  • 10 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Venezuela set to raise gasoline prices to international levels.
  • 22 hours Are Trump's steel tariffs working? Seems they are!
  • 2 days WTI @ 69.33 headed for $70s - $80s end of August
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 2 hours China goes against US natural gas
  • 1 day Corporations Are Buying More Renewables Than Ever
  • 3 hours Why hydrogen economics does not work
Editorial Dept

Editorial Dept

More Info

Trending Discussions

Oil Volatility at Seven Year High

Friday, January 29, 2016

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

1. Currencies, foreign exchange under pressure

 

- This WSJ graphic highlights the growing currency problem stemming from the collapse in oil prices.
- Azerbaijan, which depends on oil prices for over 90 percent of export revenue, had to abandon its currency peg twice last year because of falling oil prices. Azerbaijan blew through 64 percent of its foreign exchange in 2015 to defend its currency peg. The state is now tapping its sovereign wealth fund as it scrambles for resources.
- Other oil producers are also in the firing line. Saudi Arabia’s riyal and Nigeria’s naira could be forced off their pegs.
- China is a much bigger worry. The surprise devaluation last year rattled financial markets. It is still burning through foreign exchange to defend its current exchange rate, but global markets are concerned that a further depreciation might be coming down the pike.
- The capital outflows reflect the souring investment climate for emerging markets. A record $732 billion in capital fled emerging market economies in 2015, a worrying sign for a world searching for a growth engine.

2. Trade volumes slowing

 

-…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





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