Business

Submitted by Charles Kennedy via OilPrice.com,

In an oil sector first, the oil-rich United Arab Emirates (UAE) has offered free oil to India in return for a storage deal at India’s planned underground facility as the supply glut worsens and some analysts predict that ‘’peak storage” could sending prices crashing further.

The UAE’s Abu Dhabi National Oil Company (ADNOC) has agreed to store crude oil in India's maiden strategic storage facility, sweetening the deal by saying India could take two-thirds of the oil for free.

Having bounced 22% off Thursday's lows, amid endless confidence-inspiring chatter (of buybacks, bailouts, bank CEO buys, and SWFs saving the day), Deutsche Bank closed lower on the day, tumbling over 6% from its opening highs as the reality of the credit markets continues to sink in.

So, no, Deutsche Bank (and its $64 trilion derivatives book) is not "fixed" - far from it...

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A New York bound Virgin Atlantic flight had to return to London when the co-pilot had a laser beam directed into his eyes during take off from Heathrow airport. The co-pilot began to feel unwell shortly into the flight. Laser attacks are becoming more frequent as imports of cheap lasers rise. They have the potential to blind or cause irreversible eye damage if aimed momentarily at the right spot. The Independent reports: Police said they were trying to find the source of the beam.

EURUSD is down over 120 pips this morning and accelerating as Mario Draghi drops all kinds of tapebombs in his Q&A with his Brussels overlords. Most crucially, slamming EURUSD 70 pips and breaking Wednesday lows, was his admission that while The ECB would "not buy" non-performing Italian bank loans, it would (confirmed by Italy's Treasury) allow the busted deals as repo collateral (how close to par?) allowing Italian banks to kick the can just a little further.

Volatility, loss of confidence and central bank impotence stalk the capital markets. Gold pulls back in an expected retrenchment. Equity markets are still digesting what the world looks like. Absence of a strong Chinese domestic economy. A developing economy losing its easy credit. Oil prices adjusting to demand levels indicative of economic activity and, most tragically, the continuing proxy wars fought in the middle east as warmongers continue to slaughter innocent civilians.