Author: BlackMask Financial

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Oil shipments to China rebound in February as congestion at the coast clears

Oil markets have focused on a drop in crude demand due to the COVID-19 epidemic, but shipments of oil into China show a year-on-year climb last month and tankers don’t sit idle at the coast for long, according to experts who monitor crude-oil shipments.

“After a lull in mid-February, Chinese waterborne crude imports have rebounded strongly, finishing the month of February at just under 9 million barrels per day, up 4% year-on-year,” said Matt Smith, director of commodity research at ClipperData.

Oil demand in China has suffered in the wake of COVID-19, which was first identified in late December in Wuhan, Hubei Province in China. Official gauges of China’s factory and nonfactory activity released in late February plunged to record lows for that month as the domestic economy struggled to resume normal operations. But “total crude waiting offshore China has dropped to 15 million barrels, after being 25 million barrels a week and half ago,” said Smith, adding that floating storage volumes are holding fairly steady at around 6 million barrels, all of which is offshore northern China. Late last month, Samir Madani, co-founder of TankerTrackers.com, which tracks and reports shipments and storage of crude oil said that the “parking lot of tankers off the coast of China comes and goes.” “The ports can’t handle a steady stream of peak volume,” which is about 11 million barrels per day, “because of the fact that the refineries aren’t processing as much as they used to,” he said. There is, however, “plenty of space to take on all of this oil once they boost refining again,” said Madani. So while there are still “quite a lot of barrels” floating off the coast of China, they “don’t have to wait weeks, but merely days” to be taken in, he says. The Organization of the Petroleum Exporting Countries and their allies are expected to announce an official agreement to cut crude production in an effort to stabilize prices on Friday. Nick Note: you wanna hear the really cool part? China is cranking up again and and OPEC really does not need to cut oil supplies.. We are about to have more fun then a drunken sailor who just got paid at a Shanghai tittie bar!

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 OPEC+ 1,500,000cuts to last until 2021

The 1.5 million barrels per day cut proposed earlier by the Organization of the Petroleum Exporting Countries (OPEC) would run until the end of the year, according to an unnamed OPEC delegate. The delegate who spoke to Bloomberg on Thursday added that the cartel would be responsible for taking 1 million b/pd off the market, while allied producers would cover the remaining 500.000 barrels

The proposed cut is the biggest since the 2008 financial crisis and comes amid the coronavirus epidemic, which continues to drive crude prices lower.

Nick Note: this is huge….. Markets down because of that little word proposed. Russian i am tlod will join the OPEC+ crazy train!

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OPEC agrees production cut of 1.5M bpd – report

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Fed’s $100 Billion Repo Intervention Falls Short Of Bank Demand

Comparison 2009 wipeout and today

Big banks’ demand for central bank cash remained very strong on Wednesday, leading the Federal Reserve Bank to add a fresh $100 billion to the financial system. The Fed added the money via what’s called an overnight repurchase agreement operation, or repo. Eligible banks, called primary dealers, sought $111.48 billion from the central bank, exceeding the $100 billion cap the Fed places on overnight repos.

The heavy demand for Fed cash reprised the strong interest seen for Fed money on Tuesday, when the Fed added even more money to the financial system. As of Wednesday morning, the total amount of Fed repos outstanding held steady from Tuesday at $195 billion.

Repo outstanding levels had been falling over the recent weeks, but have ticked up over the last two days, although they are still short of the $255.62 billion that was outstanding on Jan. 1. Driving the demand for Fed repos are highly unsettled markets, as traders and investors try to respond to the coronavirus and its potential economic impact. Treasury yields have fallen to historic lows and the Fed implemented a half percentage point emergency rate cut on Tuesday that also impacted trading and money market conditions. Some market participants have pointed to a high demand to hold Treasurys as a force pushing up short-term rates.    Referring to the market where banks and firms borrow and lend cash short-term, Wrightson ICAP told clients “we expect the rise in repo spreads to unwind in the days ahead, but have no particular insight into how long that will take.” Fed repo operations take in U.S. Treasury, agency and mortgage bonds from eligible banks in a de facto short-term loan of central-bank cash, collateralized by the bonds. Primary dealers are limited in the amount of liquidity they can take in exchange for their securities, and they pay interest to the central bank to get the funds. Fed money-market interventions are designed to maintain the fed-funds rate target range. The Fed controls the fed-funds rate to influence the overall cost of borrowing in the U.S. economy as part of its efforts to achieve the job and inflation goals set for it by Congress. Fed repos had been scheduled to wind down next month, and Treasury bill buying aimed at growing reserves was supposed to be completed sometime in the second quarter. But those plans could change amid the rapidly shifting economic and financial outlook. Some in the market are already wondering if the Fed will increase the size of its temporary operations to accommodate the high level of demand from banks. Nick Note: i have not seen money pumping like this in years. To be precise 12 years…..

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OPEC Source: No Wednesday Deal

OPEC

The OPEC meeting of ministers from OPEC, Russia, and other non-OPEC producers ended its meeting day without agreeing on a solution to the coronavirus problem, with Russia holding out, an OPEC source told Reuters on Wednesday afternoon, raising doubts that the group will get a bigger cut deal done after all. While Saudi Arabia and a few others had pushed hard for additional cuts—some as much as 1.5 million barrels per day—through the second quarter, Russia, who sits in a better place budget-wise to withstand lower oil prices, instead lobbied to merely keep the existing cuts in place through the end of the second quarter. And while President Vladimir Putin earlier this week said that Russia was willing to continue its cooperation with the OPEC+ group, it is no secret that the Russian oil companies were not eager to sign on to additional cuts.

Russian Energy Minister Alexander Novak left the Joint Ministerial Monitoring Committee meeting today after discussing the proposals for three hours.

Russia’s reluctance to sign on to cut even more oil production does not bode well for the oil markets, which have taken a severe beating by the coronavirus since the beginning of the year.  Analysts have surmised that the markets were already pricing in additional cuts by OPEC+, and any failure to fulfill market expectations could have a profound negative effect on oil prices.

OPEC has routinely pulled out a win in the eleventh hour, so all hope is not lost, and the bump in the road that is Russia may serve to successfully manage expectations in a market that was primed for a cut between 600,000 bpd and 1 million bpd.

Last week, rumors surfaced that Saudi Arabia and two other OPEC members would be willing to go it alone should Russia fail to jump on board with additional cuts. Nick Note: I believe their wi be a BIG production cut with Russia or without….

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Dow rises nearly 500 points a day after Fed’s surprise interest rate cut

Wall Street traders are pegging stock-market gains on Wednesday to Biden’s Tuesday night victories in the Democratic primary vote for a U.S. presidential candidate.. ….

Nick Bit! Bullshit this is a excuse since they got it so wrong yesterday….. Its all about global central bank coordinated quantum easing

Getty Images Democratic presidential candidate Joe Biden greets restaurant patrons at Buttercup Diner in Oakland, Calif.

U.S. stocks rebounded on Wednesday after results of the Democratic party’s primary vote to nominate a presidential candidate in November’s election boosted the chances of former Vice President Joe Biden.

On Tuesday stocks had slumped when a rare emergency interest rate cut by the Federal Reserve failed to inspire investor confidence in policymakers’ ability to counter the COVID-19 epidemic, the infectious disease that originated in Wuhan, China late last year.

The Dow Jones Industrial Average DJIA, +1.85%  advanced 491 points, or 1.9%, to around 26,408. The S&P 500 SPX, +1.58%  rose 43 points, or 1.4%, to 3,047. The Nasdaq Composite COMP, +1.60%  climbed 108 points, or 1.2%, to 8,792.

On Tuesday, the Dow finished 785.91 points lower, or 2.9%, to 25,917.41, after being down by as many as 997.04 points. Meanwhile, the S&P 500 fell 86.86 points, or 2.8%, to 3,003.37. The Nasdaq Composite Index retreated 268.07 points, or 3%, to end at 8,684.09. antibusiness. Nick Bit: Thats why i initiated BEFORE my secret super duper spread trade secret weapon.  

The bounceback in stocks on Wednesday came after the Fed jolted markets with a half-a-percentage-point rate cut on Tuesday, saying that while the economy’s fundamentals remain strong, the “coronavirus poses evolving risks to economic activity.” Investors now say other global central banks are likely to follow suit, with analysts pointing to the Bank of Canada as the next to pull the trigger on rate cuts. The International Monetary Fund’s members called on the Washington-based international organization to provide available financing for countries dealing with the economic shock of the coronavirus. This comes a day after the World Bank pledged to deploy $12 billion of funds for such nations. Stocks ended Tuesday with losses of about 3% and the 10-year Treasury note yield fell below 1% for the first time in a century and a half. “The magnitude of the market sell-off and the rapid policy reaction encouraged us to recently add to our risk positions” through additional exposure to U.S. high-yield credit versus high-quality bonds, Mark Haefele, UBS Wealth Management’s global chief investment officer, wrote in a note. Nick Note: Lets get this straight… Forget Bison the Biden candidate for president who has lost his dignity becoming a reality TV show screaming Meme. Like Trump! This is all about Lock And Load massive and i mean MASSIVE central bank coordinated Quantum Easing, Its party time for now. BUT later on it will bring about a global depression and financial system collapse. Until that day of reckoning lets let the two ton Guerrilla orgy make us a 40 foot shipping container load of money.

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Dow rises 500 pts premarket after Fed cut

Nick Bit: So not so stupid after all after all!  Some of you shit in your pants on yesterdays drop where i put you net long.  Some of you were running around in your cage like a LIZARD with its head cut off. FOR THE RECORD I KNOW WHAT I AM DOING!

Dow Jones futures surged early Wednesday, along with S&P 500 futures and Nasdaq futures, as Super Tuesday election results showed Joe Biden faring well. An emergency Fed rate cut briefly boosted the major indexes Tuesday but stocks soon reversed sharply lower, with Apple (AAPL), Microsoft (MSFT), AMD (AMD), Adobe (ADBE) and Amazon.com (AMZN) all hitting resistance or losing support. A stock market rally attempt is still active, but for now the coronavirus stock market correction continues. The big 50-basis point Fed rate cut Tuesday morning provided a brief sugar high for the Dow Jones and other major indexes. But, like a sugar pill, the semi-surprise monetary stimulus didn’t treat the underlying economic impact of the Covid-19 outbreak and soon faded. This AM the Dow Jones futures rose 2.7% vs. fair value. S&P 500 futures climbed 2.2%. Nasdaq 100 futures advanced 2.2%. Dow Jones futures have been volatile the past few days, along with regular trading. That’s not unusual for a stock market correction. Nick Note: Wall Street and the talking DICK heads are clueless. The drop is over. we got our 10% and that is all the market has to give. Now its time to trade the rally back, So get you ass in gear! The world governments and central banks are in rare agreement. Coordinated central bank quantum easing and Fiscal Stimulus is what will drive stocks into a recovery. Obviously this will not last… But lest not get to far ahead of ourselves

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1 Million Bpd OPEC+ Cut Send Oil To $60

OPEC and its Russia-led non-OPEC allies could push Brent Crude prices back to $60 a barrel if the coalition agrees to deepen the cuts by up to 1 million bpd, a senior executive at Russia’s second largest oil producer, Lukoil, told Reuters on Tuesday. OPEC and its allies meet in Vienna later this week to coordinate a joint action in response to the slump in demand and oil prices due to the coronavirus outbreak.   The OPEC+ group’s joint technical committee (JTC) issued a proposal early last month that the producers extend the cuts as-is until the end of 2020 and deepen those cuts in the second quarter in response to the fact that the coronavirus “has had a negative impact on oil demand and oil markets.” Last week, OPEC’s leader Saudi Arabia was said to be asking members of the OPEC+ group to consider an additional collective cut of 1 million bpd— that is 400,000 bpd higher than the initial proposal of the panel. Russia continues to refuse to announce its position regarding deeper cuts by the OPEC+ coalition, but over the weekend Russian President Vladimir Putin suggested that Moscow will continue to play ball and cooperate with OPEC, although it sees current oil prices as “acceptable.”

Speaking to Reuters, Lukoil’s Vice President Leonid Fedun said that a collective OPEC+ cut of between 600,000 bpd and 1 million bpd would be sufficient to push Brent back up to $60 a barrel.

The comments of a top executive from Russia’s second biggest oil producer suggest that Russia will continue its cooperation with OPEC.

“We are ready to cut [our oil production] as much as we are told to. Better to sell less oil but at a higher price,” Fedun of Lukeoil told Reuters.

Nick Note: What the fuck good does it to you to hire a billion dollar hedge fund manger proven to see the future  and still get a lizard brain going every time wallstreet TRIES TO FUCK you on the trades? You listen to some Eotrade desk clerk asshole (OR YOUR SIGNIFICANT OTHER) who will never understand markets or me or my recoes!…….. What the fuck good does it do you to be on the receiving end of a million dollar a month EXCLUSIVE  research machine to get lizard out when the going gets tough. I told you weeks ago that OPEC+ WOULD cut 1 million barrels a day and I positioned you correctly.. DITTO on the S+P500… When it finally sinks into your brain you will realize that they are having another Lehman moment. Its the coronavirus wipe out. Its all hands on deck…. They will buy themselves a rally before the next leg down comes…… SO figure it the fuck out! Everyone NOW knows the financial system was in melt down in 2008..That information is worth about 25cents today.  Few saw it coming ahead of time when you can make money like i did. I saw ahead of time the flock of black swans the coronavirus  WOULD be and traded accordingly. The lizard asshole are their now… a day late and a million dollars short. Because the wipe out is over as global quantum easing takes hold…….. GOT IT?

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Fed cuts rates by 50 bp over coronavirus concerns

The United States Federal Reserve announced on Tuesday that it decided to cut the target range for the federal funds rate by 50 basis points to the 1%-1.25% due to coronavirus concerns.

“The fundamentals of the US economy remain strong. However, the coronavirus poses evolving risks to economic activity,” the central bank said in a statement and noted that all members of the Federal Open Market Committee (FOMC) voted in favor of the emergency move. “The Committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy,” the FOMC added.

The unexpected announcement comes just hours after US President Donald Trump urged the Fed to further lower rates as a result of the COVID-19 outbreak. Nick Note: The government is not not going to lose the system at this time. This is a VERY aggressive move… and despite the ripple events this will bring them a stock market rally

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G7: We stand ready to fight coronavirus downturn

NEWSFLASH: The world’s top finance ministers and central bankers have just pledged to do what they can to protect the global economy from the coronavirus.

Here is a copy of their Joint statement from their hastiely arranged meeting:

“We, G7 Finance Ministers and Central Bank Governors, are closely monitoring the spread of the coronavirus disease 2019 (COVID-19) and its impact on markets and economic conditions.

Given the potential impacts of COVID-19 on global growth, we reaffirm our commitment to use all appropriate policy tools to achieve strong, sustainable growth and safeguard against downside risks

Alongside strengthening efforts to expand health services, G7 finance ministers are ready to take actions, including fiscal measures where appropriate, to aid in the response to the virus and support the economy during this phase. G7 central banks will continue to fulfill their mandates, thus supporting price stability and economic growth while maintaining the resilience of the financial system.

We welcome that the International Monetary Fund, the World Bank, and other international financial institutions stand ready to help member countries address the human tragedy and economic challenge posed by COVID-19 through the use of their available instruments to the fullest extent possible.

G7 Finance Ministers and Central Bank Governors stand ready to cooperate further on timely and effective measures.”