Bank capital, and a bank’s liquidity position, are concepts that are central to understanding what banks do, the risks they take and how best those risks should be mitigated. This article provides a primer on these concepts. It can be misleading to think of capital as ‘held’ or ‘set aside’ by banks; capital is not …
Commercial crude oil inventories in the United States, went down by 7.5 million barrels to 473.7 million barrels in the week ending March 24, the US Energy Information Administration (EIA) stated in its report issued on Wednesday. The crude oil refinery inputs averaged 15.8 million barrels per day (bpd) during the same week, up by …
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The only certainty an oil industry observer can bank on right now is that no one understands the markets. The extreme end of globalization has introduced so many variables that market analysts can no longer effectively predict the non-linear ripples. Right now is a case in point. We have a clean cut dividing line between …
Continue reading “How Herd Mentality Sparked Chaos In Oil Markets”
Oil extended its biggest rally of the year as a clash between Iraq and its Kurdish region curtailed exports, while fears over a fallout from the banking crisis receded. West Texas Intermediate futures rose as much as 1%, after jumping above 5% on Monday in the steepest surge since October. A legal dispute between Iraq, …
Continue reading “Oil Extends Year’s Biggest Rally as Iraqi Clash Curbs Exports”
Amid extreme volatility, crude oil prices rallied sharply on Monday recording their biggest gains in months after a banking crisis seemed to lose steam. At 4:42 p.m. EST, Brent crude was trading up 4.21%, for a $3.16 increase on the day, at $78.15 per barrel. West Texas Intermediate (WTI) was trading up 5.30%, for a …
Continue reading “Oil Prices Jump 5% On Easing Banking Fears”
There haven’t been many twists and turns when it comes to the Federal Reserve’s efforts to cool inflation: It promised to raise interest rates and that’s exactly what it’s done for eight straight months. Forecasts by futures and options traders have fluctuated based on the central bank’s comments about high inflation, the recent collapse of …
Continue reading “There’s no question the Fed will continue raising interest rates”
The China reopening effect that’s been highly anticipated — and at times, perhaps dangerously so — around the world is starting to emerge. Some promising readings in the forward-looking purchasing managers’ indexes show that factory managers are seeing a healthy flow of orders ahead, and putting the quirks of the Lunar New Year season behind …
After a major decline that saw oil prices fall to multi-year lows, oil markets have bottomed out and begun an ascent higher. Over the past two weeks, a general bearish and risk-off sentiment cut across asset markets and triggered a lengthy unwind of speculative positions in oil futures. A top commodity analyst blamed the …
Continue reading “Standard Chartered: Oil Prices Likely To Head Higher”
The 100 year event is upon us ‘The possibility of a Minsky moment in markets and geopolitics has increased. Even if central bankers successfully contain contagion, credit conditions look set to tighten more rapidly because of pressure from both markets and regulators.’ — Marko Kolanovic, JPMorgan That was a team of JPMorgan Chase & Co. …
Continue reading “Minskey is indeed in the room….. Its been 10 Loooong Years but its started.. .”
Federal Reserve Bank of St. Louis President James Bullard said that he had raised his forecast for peak interest rates this year amid ongoing economic strength, based on an assumption that banking-sector strains will prove temporary. “I had previously been at 5-3/8, now I’m at 5-5/8, so a little bit higher — 25 basis points …
Continue reading “Fed’s Bullard Lifts His 2023 Rate Forecast on Strong Growth”