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Only 5 Shale Drillers Are Still Profitable At $31 Oil
Only 5 Shale Drillers Are Still Profitable At $31 Oil Most shale oil wells drilled in the United States are unprofitable at current oil prices, Rystad Energy has warned. The Norwegian consultancy said, as quoted by Bloomberg, that drilling new wells would be loss-making for more than 100 companies. Just five shale drillers—Exxon, Chevron, Occidental, and Crownquest—can […]
Bank Of Japan Buys Record Amount Of ETFs, Admits ‘Paper Losses’, Plans Program Expansion
Bank Of Japan Buys Record Amount Of ETFs, Admits ‘Paper Losses’, Plans Program Expansion Having blown over two trillion yen since October in purchasing stocks (ETFs) in the open market to “support Japan’s economy,” markets are rife with speculation the Band of Japan (BoJ) could pledge next week to buy ETFs at a faster pace than […]
The Great American Shale-Oil Bust Turns into Massacre
The Great American Shale-Oil Bust Turns into Massacre Shares of shale oil drillers collapsed by 25%-50% today. Their bonds got massacred. Saudi-Russia price-war strategy appears successful in wiping out investors in the US shale-oil sector. It was so chaotic and brutal in the crude oil market today that the EIA, which is part of the […]
VIDEO: The Coronavirus Is The Pin Popping The ‘Everything Bubble’
VIDEO: The Coronavirus Is The Pin Popping The ‘Everything Bubble’ This will be an extinction-level event for many players For years, Peak Prosperity has been raising a loud warning of the ‘Everything Bubble’ that the world’s central banks have blown in global asset prices. Over that time, we’ve debated with hundreds of economic experts on […]
As Stocks & Oil Surge, Credit Market Carnage Continues
As Stocks & Oil Surge, Credit Market Carnage Continues Everything must be awesome again, right? Stocks are up. Oil is up. Bond yields are up… and no one has said the word “bloodbath” on CNBC yet this morning. However, those pesky kids in the credit markets won’t let stocks get away with it as HY […]
COVID-19 And Global Supply Chains: Watch Out For Bullwhip Effects
COVID-19 And Global Supply Chains: Watch Out For Bullwhip Effects In an earlier piece on the COVID-19 (Wuhan Coronavirus), I talked about how supply chain disruptions seemed to be occurring in slow-motion. A recent report from the Journal of Commerce warned of an imminent shortage of shipping containers in inland U.S. locations. How could these things be connected, and are we at […]
Funding Freeze Getting Worse: Dealers Demand Record $216BN In Liquidity From Fed Repo
Funding Freeze Getting Worse: Dealers Demand Record $216BN In Liquidity From Fed Repo Yesterday, when showing the sudden spike in the FRA/OIS spread – a key gauge of banking-sector risk which measures dollar shortages – we warned that liquidity in the market is virtually nil quoting a host of traders who confirmed that it was next to […]
New Jersey Declares State Of Emergency As Coronavirus Cases Triple In Greater New York: Live Updates
New Jersey Declares State Of Emergency As Coronavirus Cases Triple In Greater New York: Live Updates Update (0850ET): As the US market open draws near, investors are parsing a flood of coronavirus related news overnight, including the good (President Xi’s to Wuhan and a sharp drop in new cases in South Korea), the bad (US confirmed […]
Things Take a Turn
Things Take a Turn Around the same time that most Americans set their clocks ahead this weekend, something more momentous shoved the world into an epic phase-change, and the modern era, with all its mighty baggage, was finally swept away, along with that single lost hour of darkness. We’re in a new world, and one […]
Four Scenarios Of How Covid-19 Could Wreak Havoc On Global Economy
Four Scenarios Of How Covid-19 Could Wreak Havoc On Global Economy The grave risks and dangers of a globalized world of interlocking supply chains over the last four decades is starting to be realized as the crash of China’s economy could cost the world $2.7 trillion. Bloomberg Economics says the shutdown of China’s economy could have severe implications […]
A Shift in the Global Financial Order Is Upon Us
A Shift in the Global Financial Order Is Upon Us The collapse in bond yields, exacerbated by the crash in oil prices, marks an end to the era of trust in central banks. OPEC+: A 24-Hour View Coronavirus. That will be the first and last time this column mentions that word. Despite the weekend’s many developments […]
Global Recession “Appears Inevitable” – Guggenheim’s Minerd Fears Cascading ‘Butterfly Effect’
Global Recession “Appears Inevitable” – Guggenheim’s Minerd Fears Cascading ‘Butterfly Effect’ In January, Guggenheim CIO Scott Minerd warned that ultimately, markets will need to reprice for this rising risk with increased bond spreads relative to Treasury securities. However, that day of reckoning when spreads rise is being held off by the flood of central bank liquidity and international […]
Black Monday… Part Two
Black Monday… Part Two At its lows today, this was the market’s biggest down day since 1987 (by the close the biggest since Oct 2018)! In a reflection of the total loss of faith policymakers among BTFDers, @Sentimentrader notes that: This is the only day in the history of S&P 500 futures that they gapped […]
