Goldman: OPEC Should Not Extend Production Cuts

“We therefore believe that OPEC should be wary of extending its production cuts unless (1) fundamentals weaken sharply driven by transient headwinds such as a ramp up in Libya or a weakening of global demand, or (2) long term oil prices decline further, limiting the rally in spot prices and the incentive to ramp up activity.”

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It’s Falling Apart: Reflation Trade Shrivels Up And Dies As Markets Sour On Risk

Well, the dollar is under pressure on Monday, just as we said it would be on Sunday evening. The Bloomberg Dollar Spot Index fell as traders digested the failure of the GOP health care bill on Friday. This is the index’s eighth drop in the last nine days, and as Bloomberg notes this morning, “further losses of…

Behold! The Shale Oil “Deflationary Cycle” Flow Chart

We’ve written exhaustively about the deflationary dynamic that grips crude markets. Indeed, what you’re seeing from US producers is effectively what happens when QE and central banks inadvertently create deflation as opposed to inflation. It’s very simple, really. The central bank-inspired hunt for yield drives investors down the quality ladder, creating artificial demand for HY debt…

It’s Quiet Out There: G-20 Leaves Markets Feeling “Damp And Grey”

It feels quiet out there. Maybe a little too quiet. There’s plenty of G-20 banter about the US/Trump having “won” at the weekend gathering in Germany. In this context, “winning” means successfully getting the “resist all forms of protectionism” language removed from the communique. Remember, in Trump/Navarro make-believe land, free trade is a bad thing, so telling everyone…

“PUMP” & Dump?

If there’s anything I’ve been consistent on over the past several months, it’s been the idea that Wall Street and investors probably shouldn’t throw good money after bad when it comes to US shale. US operators have demonstrated an unwavering propensity to outspend, forcing them to rely on capital markets to plug funding gaps. Fortunately…

Finally Friday: Oil Looks For Weekly Gain; EM, Euro Surge; Merkel Meets America’s Useful Idiot

Well, it’s quiet out there as an exceptionally eventful week (finally) winds down. As we head into the weekend, oil is trying to eek out a gain on the week, after a surprise inventory draw (reported first by API on Tuesday and then confirmed a day later by the weekly EIA print) shored up a…