oil

While we are not sure if the market has finally had time to actually read Goldman's oil note from Sunday night (posted here at the same time) and understand that far from bullish Goldman actually warned that the market rebalancing is taking far longer and as a result is lowering its 2017 price targets, there was one additional curious highlight in the report: Goldman's breakdown of critical prices bands for oil which actually is a useful guide for how the broader market (if devoid of momentum-chasing algo traders) would respond with oil trading in any given price i

The reason why oil has resumed its ascendant ways today is due to yet another focus, this time from the sellside, on the various disruptions in the oil market, following notes from Goldman, Bank of America, and Morgan Stanley according to which the millions in barrels of oil taken offline as a result of the Canada wildfire and persistent Nigerian supply problems will push the market into equilibrium much faster than originally expected.

• European Stocks Fall as Chinese Economic Data Disappoint (WSJ)
• Oil Climbs to Highest Since November as European Shares Retreat (BBG)
• Yen weakens on Japan intervention talk before G7 meets (Reuters)
• Wall Street’s Bond Forecasters Splinter as Fed Credibility Wanes (BBG)
• Amazon to Expand Private-Label Offerings—From Food to Diapers (WSJ)
• Oil prices rise on Nigerian outages, Goldman forecast (Reuters)
• 'Avengers' threaten new insurgency in Nigeria's oil-producing Delta (Reuters)

By Chris at www.CapitalistExploits.at

A few years ago, when living in Phuket, Thailand, a group of Saudis stayed for a week's holiday in a neighboring villa.

Outside of the religious and social confines of the land of black gold and endless sand, this group made a bunch of spoiled 5-year olds left to run amok in a candy shop without adult supervision look positively angelic.

The fate of oil companies and nations hangs in the balance of oil prices. Russia could go broke. Some think that’s by US design. Saudi Arabia could experience its Arab Spring if oil prices remain too low too long. And OPEC is dead. That’s the biggest news in this new century for oil.