• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 9 hours One Last Warning For The U.S. Shale Patch
  • 5 hours Modular Nuclear Reactors
  • 13 hours Once Upon A Time... North Korea Abruptly Withdraws Staff From Liaison Office
  • 4 hours Oil Slips Further From 2019 Highs On Trade Worries
  • 14 hours Chile Tests Floating Solar Farm
  • 4 hours Poll: Will Renewables Save the World?
  • 1 day China's E-Buses Killing Diesel Demand
  • 1 day Trump sells out his base to please Wallstreet and Oil industry
  • 1 day China's Expansion: Italy Leads Europe Into China’s Embrace
  • 4 hours Read: OPEC THREATENED TO KILL US SHALE
  • 2 days Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 2 days Trump Tariffs On China Working
  • 2 days Biomass, Ethanol No Longer Green
  • 24 hours New Rebate For EVs in Canada
Alt Text

Trump’s Last Chance To Subdue Gasoline Prices

Quickly rising gasoline prices are…

Alt Text

Oil Prices Shoot Up On Large Inventory Draw

Oil prices rose on Wednesday…

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

Russian Crude Output Highest Since Fall Of Soviet Union

Ok folks, here are five factors to consider on this first Friday in October:

1) It is Nonfarm Friday, and official US employment data has just come out. It was terrible. Only 142,000 jobs were created, when 203,000 were expected. To add insult to injury, last month’s numbers saw a huge downward revision from 173k to 136k. The unemployment rate held at 5.1%, while the labor force participation rate dropped to its lowest level since October 1977 at 62.4%. Disenchantment reigns as a growing number of people throw in the towel from actively looking for a job.

(Click to enlarge)

2) After initially being propelled higher by a sell-off in the dollar immediately after the Nonfarm payrolls report, the crude complex is now charging lower, falling in line with broad-based risk aversion. Despite the evaporation of interest rate-hike expectations in response to the poor employment report, markets are selling off on the fear that the US economy is joining the trend seen in emerging markets: that of economic deterioration. Today is a good day, however, if you own gold or are looking to lock in a mortgage rate (Treasury yields are plummeting). Related:Obama’s Fracking Regulations Take A Serious Hit

3) According to government data, Russian oil output rose to 10.74 million barrels a day in September. This is up 0.4% from August, and the highest level since the fall of the Soviet Union.

4) Hurricane Joaquin strengthened late yesterday to a category 4 hurricane, but is now set to peel away into the Atlantic Ocean, opposed to heading for landfall on the East coast. The impact of a direct hit from Joaquin similar to Sandy would be a bearish influence for oil, as refineries in New Jersey, Pennsylvania, and Delaware would likely have to be shut down – for fear of flooding or damage. Related: Alaska Facing Tough Choices Without Arctic Oil

But the real bearish influence for oil comes from the potential of power cuts. These power cuts could also impact pipeline flows from the Gulf, while waterborne imports into NY Harbor would be delayed. So in a nutshell – bearish for oil, bullish for gasoline, but transitory for all. Fortunately, though, this situation is only hypothetical as Joaquin is set to head further east.

(Click to enlarge)

5) The Brazilian economy continues to worsen, manifested today in industrial production data for August. Although it came in better than expected, it still showed a drop of 9% YoY, with a 1.2% drop on the prior month. Things going from bad to worse in Brazil… Related:Can Economies Of Scale Rescue TSLA?

(Click to enlarge)

Brazilian Industrial Production YoY, % (source: investing.com)

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