{"id":16300,"date":"2016-01-11T16:05:43","date_gmt":"2016-01-11T21:05:43","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16300"},"modified":"2016-01-11T16:05:43","modified_gmt":"2016-01-11T21:05:43","slug":"petro-states-dipping-into-coffers-as-oil-price-reality-kicks-in","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16300","title":{"rendered":"Petro States Dipping Into Coffers As Oil Price Reality Kicks In"},"content":{"rendered":"

Petro States Dipping Into Coffers As Oil Price Reality Kicks In<\/a><\/h3>\n
<\/div>\n
\n
\n
Fifty-two years after Johnny Cash\u2019s \u201cRing of Fire\u201d became the first country album to top the US pop album chart, and the crude complex is stuck in a vicious circle once more.<\/div>\n
\n

We have nada-nothing-nil on the economic data front today, as is the way after the first-week-of-the-month-economic-data deluge, although Q4 earning season kicks off after hours today with Alcoa up first, as usual. It won\u2019t be until next week, however, when we really get into the full swing of things on the earnings front.<\/p>\n

China\u2019s equity market continues to have a torrid time of it, selling off a further 5.3 percent to start the new week. While European and U.S. equities are looking less ruffled by this news, the crude complex is being dragged lower once again \u2013 stuck in a tractor beam, being pulled toward the $30 level it would seem. Gasoline is trying to buck the trend, pushing higher after last week\u2019s inventory report-sponsored plunge.<\/p>\n

Related:\u00a0Statoil CEO: Expect Volatility Now, Price Spike Soon<\/strong><\/a><\/p>\n

The chart below is from Capital Economics, and it addresses the current issue of Chinese economic weakness.<\/p>\n

\"\"<\/a><\/p>\n

(Click to enlarge)<\/p>\n

The key point they are expressing (via Twitter<\/a>) is that although China\u2019s financial markets may be in turmoil, their economic indicators for the most part haven\u2019t shown deterioration since the equity market peaked mid-last year:<\/p>\n

While oversupply has been a key driver behind the oil market crash over the last eighteen months, another huge influence has been a strengthening US dollar. Hence, regardless of oil market fundamentals, if you think the U.S. dollar is going to continue strengthening this year, then you have to think that oil prices will continue to trundle lower. (Morgan Stanley do<\/a>).<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Petro States Dipping Into Coffers As Oil Price Reality Kicks In Fifty-two years after Johnny Cash\u2019s \u201cRing of Fire\u201d became the first country album to top the US pop album chart, and the crude complex is stuck in a vicious circle once more. We have nada-nothing-nil on the economic data front today, as is the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[1450,11619,592,1775,5332],"class_list":["post-16300","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-equity-markets","tag-matt-smith","tag-oil-price","tag-oil-price-collapse","tag-oilprice-com"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16300"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16300\/revisions"}],"predecessor-version":[{"id":16301,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16300\/revisions\/16301"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}