WH to cancel Alaska oil, gas leases from Trump administration

Alaska officials outraged after feds cancel Trump-era ANWR oil leases: ‘Pulling the rug out’

Alaska state officials criticized the Biden administration’s latest move to curb oil and gas drilling in the Arctic, following the cancelation of seven Trump-era leases in the Section 1002 area of the Arctic National Wildlife Refuge.  The leases were purchased by the Alaska Industrial Development & Export Authority in the waning days of the Trump administration, the state agency told Fox News Digital. The Interior Department called the cancelation of the leases one of many “significant steps” the Biden administration has taken to protect ANWR. The move will accentuate President Biden’s “historic conservation and climate agenda,” the department said in a statement. Interior Secretary Deb Haaland, who authorized the cancelation, cited climate change warming the Arctic region more than two times the rate elsewhere on Earth. She said that such steps will “further [our] commitment, based on the best available science and in recognition of the Indigenous Knowledge of the original stewards of this area, to safeguard our public lands for future generations.”

Biden previously pledged to protect 19.6 million acres of the ANWR region for the sake of polar bears and caribou, according to Reuters.

In response, AIDEA executive director Randy Ruaro told Fox News Digital in an interview Wednesday the cancelation appears to be a fulfillment of a Biden campaign promise to halt oil and gas production on federal lands.

“This is just another area where he’s attempting to just shut down oil and gas production,” Ruaro said, adding that halting speculation and production will curtail thousands of potential job opportunities, especially for those living in and around ANWR.

 “So we think there are thousands of jobs at stake, hundreds of thousands of barrels of oil there

. It’s an estimated total of 10 billion barrels of oil in ANWR and the adjacent state lands.”

Natives and local residents from inside the ANWR refuge supported the drilling project, despite claims from outside Alaska that it would be harmful to local communities, according to another AIDEA official. The Biden administration in March approved another large oil drilling project on Alaska’s North Slope, despite criticisms from those concerned about the environment and climate change. Brandon Brefczynski, another AIDEA official, characterized the cancelation as “pulling the rug out from under us” as requests-for-proposals were already sent out to do preliminary examinations of seismic activity and other concerns that must be addressed prior to actual oil and gas drilling. NN: to protect polar bears and some dubious climate change hysterics the Biden administration sells out America. Giving money to Russia to expand it empire. Financing Iranian nukes in exchange for oil. And fund one of the most oppressive regimes  Venezuela…. Does this make any sense?

US markets extend losses, Dow plunges over 300 pts

Major United States stock exchanges flopped further on Wednesday as worries over the Federal Reserve’s next monetary policy moves seemingly sparked fears among investors. Cleveland Federal Reserve Bank President Loretta Mester insisted that the costs of policy undershooting are still greater than those of overshooting. Moreover, US Federal Reserve Governor Christopher Waller mentioned that one more interest rate hike shouldn’t push the economy into a recession. Meanwhile, Federal Reserve Bank of Boston President Susan Collins cautioned that the next steps need to be made “patiently” and “carefully.” The Dow Jones plunged 0.94% or 323 points at 12:57 am ET. A minute later, the Nasdaq 100 plummeted 1.34% or 207 points and the S&P 500 tumbled 1.14%. The euro traded flat against the dollar at 12:59 am ET, selling for 1.07209. NN: we started our NASDAQ100 TRADE BEFORE THE PLUNGE

Legendary British investor Jeremy Grantham is predicting hard times ahead

Legendary British investor Jeremy Grantham is predicting hard times ahead, as he lays out his case for doom and gloom to cast a shadow on the markets.

In Grantham’s view, the pandemic stock gains were a bubble, and that bubble hasn’t fully popped yet.

Putting some numbers to this view, Grantham believes that a further drop of 20% is possible this year – and in his worst-case scenario, he says that the

S&P 500 could collapse as much as 50% from current levels.

Backing his view, Grantham says of that worst case, “Even the direst case of a 50% decline from here would leave us at just under 2,000 on the S&P.  Doubling down on the gloom in an interview taped for an upcoming episode of Bloomberg Wealth with David Rubenstein, Grantham said the Federal Reserve’s most aggressive tightening in four decades could tip the economy into recession and take the stock market with it.

“In the end, life is simple. Low rates push up asset prices. Higher rates push asset prices down,” he told Rubenstein. “We’re now in an era that will average higher rates than we had for the last 10 years.”

Grantham, 84, is well known for bearish forecasts that have occasionally been issued before big market shocks, such as in 2000 and 2008.

He called the post-pandemic surge in equities “in many ways about equal to the 2000 tech bubble”

but said its deflation has been delayed by the frenzy surrounding artificial intelligence. NN: Regard this as your marching orders. Grantham is one of the very  very few people in this business who understands how markets works. We are about to have a BIG market crash that will exceed the 2000 Tech wreck, AI is a scam…… These valuations are the biggest bubbles i have ever seen. Trade reco is coming

S. Arabia, Russia extend voluntary oil cuts until end of Dec…… But the Rumor sell the Fact

Saudi Arabia and Russia decided on Tuesday to extend their voluntary oil cuts until the end of December 2023. According to SPA, Saudi Arabia’s state news agency, the country shared it will be continuing its cut of one million barrels per day from October to the end of December, with its production expected to remain at around nine million barrels per day throughout the year. Meanwhile, Russian Deputy Prime Minister Alexander Novak told reporters that the country will do the same and extend its oil output slashes as well, until the end of 2023, cutting the production by 300,000 barrels per day. Novak underlined that the action was taken in order to keep the crude market in balance. Both Riyadh and Moscow stressed that they will be conducting monthly reviews to determine whether deeper or shallower cuts are needed. The question now is whether this move should be viewed through a bullish or bearish lens. While production cuts from Saudi Arabia could be seen as bullish in restricting global oil supplies, the bears are quick to point out that this means Saudi Arabia does not see China’s crude oil demand rising enough to warrant loosening the reins on its current production cut strategy. Originally, Saudi Arabia had proposed the additional 1 million bpd supply cut—a voluntary supply cut–as a July-only event. Later, however, Saudi Arabia extended the production cut into August and September. The cut is not required as part of the deal reached with its OPEC and OPEC+ groups, rather it is in addition to the OPEC mandates. NN: Congratulations…. We creamed the cherry!

S. Arabia, Russia extend voluntary oil cuts until end of Dec…… Oil prices SOAR after OPEC+ output cut extension

Saudi Arabia and Russia have decided on Tuesday to extend their voluntary oil cuts until the end of December 2023. According to SPA, Saudi Arabia’s state news agency, the country shared it will be continuing its cut of one million barrels per day from October to the end of December, with its production expected to remain at around nine million barrels per day throughout the year. Meanwhile, Russian Deputy Prime Minister Alexander Novak told reporters that the country will do the same and extend its oil output slashes as well, until the end of 2023, cutting the production by 300,000 barrels per day. Novak underlined that the action was taken in order to keep the crude market in balance. Both Riyadh and Moscow stressed that they will be conducting monthly reviews to determine whether deeper or shallower cuts are needed.

Lab tests on Covid-variant BA.2.86 less contagious less severe

https://youtu.be/K1HpFGcNPR4

T4fwo teams of US scientists have completed lab experiments testing the antibodies from vaccinated and infected Americans to see how well they might be able to fend off currently circulating variants of the virus that causes Covid-19, including the highly mutated BA.2.86.

Their results match up almost exactly, and the news – at least when it comes to BA.2.86, which has also been dubbed Pirola – is very good. Our immune systems can recognize and fight off this variant as well as, and perhaps even a bit better than, the currently circulating offshoots of the XBB variant.

What’s more, people who had the most robust responses against BA.2.86 were those who were within six months of an infection with the XBB subvariant. This suggests that this fall’s updated Covid-19 vaccines, which are designed to fight off XBB.1.5, will provide added protection against a range of circulating Covid-19 lineages, including BA.2.86.

“Two independent labs have basically shown that BA.2.86 essentially is not a further immune escape compared with current variants,” Dr. Dan Barouch, director of the Center for Virology and Vaccine Research at Beth Israel Deaconess Medical Center and leader of one of the labs, told CNN.

Their results align with earlier experiments by labs in China and Sweden. Taken together, the data suggests that BA.2.86 will not be as troublesome as experts had feared. In short, this one seems to be a “scariant.”

But another variant, FL.1.5.1, which is causing an estimated 15% of new Covid-19 infections in the US, may be a different story. This fast-growing descendant of the XBB recombinant variant has a constellation of mutations that have raised the eyebrows of variant trackers. In lab testing, it was the most immune-evasive.

“If there wasn’t so much hype about BA.2.86, that would actually be the focus of the paper,” Barouch said.

Concurring findings

Barouch and his team used pseudoviruses: They built the spikes of the BA.2.86 virus and attached them to the body of a different virus. Then they took plasma, the clear part of the blood, from 66 Americans who had been vaccinated with monovalent vaccines only, who had gotten bivalent vaccines or who had recently recovered from an XBB infection, and tested how well their antibodies neutralized 10 Omicron subvariants including BA.2.86.

They found that across a range of different types of immunity, people were able to neutralize BA.2.86 as well as, and sometimes more effectively than, other circulating variants. The people with the highest neutralizing antibodies were those who had recently recovered from an XBB infection.

At the other lab, Dr. David Ho, a professor of microbiology and immunology at Columbia University, and his team used blood plasma from 61 adults: 17 who had gotten three monovalent vaccine doses and two bivalent vaccines, 25 who had recovered from a BA.2 breakthrough infection and 19 who’d recovered from an XBB breakthrough infection.

His results were substantially similar to Barouch’s. Across the range of immune profiles, antibodies in the blood were able to recognize BA.2.86 just as capably as they were other circulating variants. People with the highest degree of immunity against BA.2.86 were those who’d recovered from recent XBB infections.

That was a surprise because of how many mutations BA.2.86 has. Scientists had predicted that based on what was known about those specific mutations, it might be highly immune-evasive.

Barouch said he didn’t believe his first batch of results, so the lab worked all weekend to repeat the experiments. The results were the same.

“It was not exactly what I was expecting,” he said. “Now, they’ve been repeated, and so now we’re confident about them.”

Barouch said he has been asked to brief the White House and the US Centers for Disease Control and Prevention on his findings. “I think these results are pretty important,” he said.

A global effort

Scientists around the world are fast-tracking lab experiments to try to understand the BA.2.86 variant.

Four groups — the two US teams, as well as labs in China and Sweden — have reported results. The early results paint BA.2.86 as more of a paper tiger rather than the looming beast it first appeared to be, although that impression could change as more results come in.

BA.2.86 captured the world’s attention because it looks radically different than any other variants of the coronavirus that we’

BA.2.86 captured the world’s attention because it looks radically different than any other variants of the coronavirus that we’ve seen so far.

This new lineage has more than 30 changes to its spike protein compared with both its next closest ancestor, BA.2, and with the recently circulating XBB.1.5 lineage. It was an evolutionary leap on par with the one that the original Omicron variant, BA.1, made when it appeared almost two years ago — and everyone remembers how that went down.

During the Omicron wave, infections and hospitalizations hit their highest points of the pandemic in the United States. Weekly deaths reached their second-highest peak, a lesson in how even a tamer version of the virus can be a serious threat if it causes a tidal wave of infection across the population. The vaccines had to be updated.

Omicron quickly overtook other Covid-19 variants and began creating its own offshoots, viruses that we’re still dealing with. It became a lesson in how agile the virus can be and how fragile our defenses are in the face of such large shifts.

Not the ‘second coming of Omicron’

The White House was worried enough about another Omicron-level event that it quietly polled about a dozen experts earlier this year about the chances the world would see one within the next two years. Most experts pegged the possibility between 10% and 20%.

So when BA.2.86 appeared on the scene in late July with eerie echoes of Omicron, variant hunters were spooked, and researchers leapt into action to learn more about the new lineage. It has spread to at least 11 countries, including the United States.

The country reporting the most sequences so far is Denmark, and experts say they are closely watching the situation there for clues to its growth.

But only about three dozen sequences, from as many infected patients, have shown up in a global repository over the past month. Even with a lot less genetic surveillance than we once had, experts think that if BA.2.86 were coming on strong, it would be apparent.

“My friends, this is not the second coming of Omicron. If it were, it is safe to say we would know by now,” Dr. Bill Hanage, an epidemiologist who is co-director of Harvard University’s Center for Communicable Disease Dynamics, said in a social media post.

Now, scientists are in the midst of lab experiments to help us better understand how well our immune systems and vaccines will recognize and defend against viruses in the BA.2.86 family.

Early studies offer reassurance

In the first series of experiments, using the blood of vaccinated mice and from vaccinated and recently infected people, researchers in China determined that BA.2.86 does look really different to our immune systems compared with previous versions of the virus that causes Covid-19, and it is able to escape some of our immunity.

Researcher Yunlong Cao from the Biomedical Innovation Center at Peking University said he saw a twofold drop in the ability of our immunity from vaccination and recent infection to neutralize the BA.2.86 virus compared with viruses from the XBB.1.5 family.

A twofold drop isn’t wonderful, but it’s also not huge. By comparison, an eightfold drop in the ability of vaccine-created immunity to neutralize a new influenza virus is the benchmark scientists use to update the flu shot.

At the same time, the BA.2.86 variant was about 60% less infectious than XBB.1.5 viruses, something that experts think could explain why it has been found in so many different countries, but only at low levels.

“I would say it will slowly circulate in the population. It will not be able to compete with other fast prevailing variants,” Cao noted in an email to CNN, referring to variants like EG.5 and FL.1.5.1, which are currently dominating transmission in the United States.

In a second set of experiments, researchers at the Karolinska Institute in Sweden pitted BA.2.86 against antibodies in the blood of human donors that were collected at two points in time: from late 2022, before the XBB variant emerged, and from late August.

The antibodies in the older samples couldn’t effectively shut down BA.2.86, but the blood samples taken from do

The antibodies in the older samples couldn’t effectively shut down BA.2.86, but the blood samples taken from donors just a week ago did a better job.

“Overall, it doesn’t appear to be nearly as extreme a situation as the original emergence of Omicron,” wrote principal researcher Benjamin Murrell in a post on social media.

“It isn’t yet clear whether BA.2.86 (or its offspring) will outcompete the currently-circulating variants, and I don’t think there is yet any data about its severity, but our antibodies do not appear to be completely powerless against it,” he wrote.

Two teams of US scientists have completed lab experiments testing the antibodies from vaccinated and infected Americans to see how well they might be able to fend off currently circulating variants of the virus that causes Covid-19, including the highly mutated BA.2.86.

Their results match up almost exactly, and the news – at least when it comes to BA.2.86, which has also been dubbed Pirola – is very good. Our immune systems can recognize and fight off this variant as well as, and perhaps even a bit better than, the currently circulating offshoots of the XBB variant.

What’s more, people who had the most robust responses against BA.2.86 were those who were within six months of an infection with the XBB subvariant. This suggests that this fall’s updated Covid-19 vaccines, which are designed to fight off XBB.1.5, will provide added protection against a range of circulating Covid-19 lineages, including BA.2.86.

“Two independent labs have basically shown that BA.2.86 essentially is not a further immune escape compared with current variants,” Dr. Dan Barouch, director of the Center for Virology and Vaccine Research at Beth Israel Deaconess Medical Center and leader of one of the labs, told CNN.

Their results align with earlier experiments by labs in China and Sweden. Taken together, the data suggests that BA.2.86 will not be as troublesome as experts had feared. In short, this one seems to be a “scariant.”

But another variant, FL.1.5.1, which is causing an estimated 15% of new Covid-19 infections in the US, may be a different story. This fast-growing descendant of the XBB recombinant variant has a constellation of mutations that have raised the eyebrows of variant trackers. In lab testing, it was the most immune-evasive.

“If there wasn’t so much hype about BA.2.86, that would actually be the focus of the paper,” Barouch said.

Concurring findings

Barouch and his team used pseudoviruses: They built the spikes of the BA.2.86 virus and attached them to the body of a different virus. Then they took plasma, the clear part of the blood, from 66 Americans who had been vaccinated with monovalent vaccines only, who had gotten bivalent vaccines or who had recently recovered from an XBB infection, and tested how well their antibodies neutralized 10 Omicron subvariants including BA.2.86.

They found that across a range of different types of immunity, people were able to neutralize BA.2.86 as well as, and sometimes more effectively than, other circulating variants. The people with the highest neutralizing antibodies were those who had recently recovered from an XBB infection.

At the other lab, Dr. David Ho, a professor of microbiology and immunology at Columbia University, and his team used blood plasma from 61 adults: 17 who had gotten three monovalent vaccine doses and two bivalent vaccines, 25 who had recovered from a BA.2 breakthrough infection and 19 who’d recovered from an XBB breakthrough infection.

His results were substantially similar to Barouch’s. Across the range of immune profiles, antibodies in the blood were able to recognize BA.2.86 just as capably as they were other circulating variants. People with the highest degree of immunity against BA.2.86 were those who’d recovered from recent XBB infections.

That was a surprise because of how many mutations BA.2.86 has. Scientists had predicted that based on what was known about those specific mutations, it might be highly immune-evasive.

Barouch said he didn’t believe his first batch of results, so the lab worked all weekend to repeat the experiments. The results were the same.

“It was not exactly what I was expecting,” he said. “Now, they’ve been repeated, and so now we’re confident about them.”

Barouch said he has been asked to brief the White House and the US Centers for Disease Control and Prevention on his findings. “I think these results are pretty important,” he said.

A global effort

Scientists around the world are fast-tracking lab experiments to try to understand the BA.2.86 variant.

Four groups — the two US teams, as well as labs in China and Sweden — have reported results. The early results paint BA.2.86 as more of a paper tiger rather than the looming beast it first appeared to be, although that impression could change as more results come in.

BA.2.86 captured the world’s attention because it looks radically different than any other variants of the coronavirus that we’ve seen so far.

This new lineage has more than 30 changes to its spike protein compared with both its next closest ancestor, BA.2, and with the recently circulating XBB.1.5 lineage. It was an evolutionary leap on par with the one that the original Omicron variant, BA.1, made when it appeared almost two years ago — and everyone remembers how that went down.

During the Omicron wave, infections and hospitalizations hit their highest points of the pandemic in the United States. Weekly deaths reached their second-highest peak, a lesson in how even a tamer version of the virus can be a serious threat if it causes a tidal wave of infection across the population. The vaccines had to be updated.

Omicron quickly overtook other Covid-19 variants and began creating its own offshoots, viruses that we’re still dealing with. It became a lesson in how agile the virus can be and how fragile our defenses are in the face of such large shifts.

Not the ‘second coming of Omicron’

The White House was worried enough about another Omicron-level event that it quietly polled about a dozen experts earlier this year about the chances the world would see one within the next two years. Most experts pegged the possibility between 10% and 20%.

So when BA.2.86 appeared on the scene in late July with eerie echoes of Omicron, variant hunters were spooked, and researchers leapt into action to learn more about the new lineage. It has spread to at least 11 countries, including the United States.

The country reporting the most sequences so far is Denmark, and experts say they are closely watching the situation there for clues to its growth.

But only about three dozen sequences, from as many infected patients, have shown up in a global repository over the past month. Even with a lot less genetic surveillance than we once had, experts think that if BA.2.86 were coming on strong, it would be apparent.

“My friends, this is not the second coming of Omicron. If it were, it is safe to say we would know by now,” Dr. Bill Hanage, an epidemiologist who is co-director of Harvard University’s Center for Communicable Disease Dynamics, said in a social media post.

Now, scientists are in the midst of lab experiments to help us better understand how well our immune systems and vaccines will recognize and defend against viruses in the BA.2.86 family.

Early studies offer reassurance

In the first series of experiments, using the blood of vaccinated mice and from vaccinated and recently infected people, researchers in China determined that BA.2.86 does look really different to our immune systems compared with previous versions of the virus that causes Covid-19, and it is able to escape some of our immunity.

Researcher Yunlong Cao from the Biomedical Innovation Center at Peking University said he saw a twofold drop in the ability of our immunity from vaccination and recent infection to neutralize the BA.2.86 virus compared with viruses from the XBB.1.5 family.

A twofold drop isn’t wonderful, but it’s also not huge. By comparison, an eightfold drop in the ability of vaccine-created immunity to neutralize a new influenza virus is the benchmark scientists use to update the flu shot.

At the same time, the BA.2.86 variant was about 60% less infectious than XBB.1.5 viruses, something that experts think could explain why it has been found in so many different countries, but only at low levels.

“I would say it will slowly circulate in the population. It will not be able to compete with other fast prevailing variants,” Cao noted in an email to CNN, referring to variants like EG.5 and FL.1.5.1, which are currently dominating transmission in the United States.

In a second set of experiments, researchers at the Karolinska Institute in Sweden pitted BA.2.86 against antibodies in the blood of human donors that were collected at two points in time: from late 2022, before the XBB variant emerged, and from late August.

The antibodies in the older samples couldn’t effectively shut down BA.2.86, but the blood samples taken from donors just a week ago did a better job.

“Overall, it doesn’t appear to be nearly as extreme a situation as the original emergence of Omicron,” wrote principal researcher Benjamin Murrell in a post on social media.

“It isn’t yet clear whether BA.2.86 (or its offspring) will outcompete the currently-circulating variants, and I don’t think there is yet any data about its severity, but our antibodies do not appear to be completely powerless against it,” he wrote.

More to learn

All of these studies have limitations. Researchers were testing pseudoviruses, which are essentially models of what the BA.2.86 virus looks like, not the virus itself. The study from Sweden used only a small number of samples from blood donors. And because these studies used blood donors in China and Sweden, they may not reflect the immunity of people in the US, who may have been infected with a different mix of variants and immunized with different vaccines.

Still, experts said they were encouraged by these early results and eager to see more.

“The news is better than I was expecting,” said Dr. Ashish Jha, former White House Covid-19 response coordinator, in a post on social media. “And makes me more encouraged that the new upcoming vaccine will have a real benefit against current dominant variant (EG.5) as well as BA.2.86.”

The Variant Technical Group at the UK’s Health Security Agency met last week to consider whether BA.2.86 should be reclassified from a “variant under

The Variant Technical Group at the UK’s Health Security Agency met last week to consider whether BA.2.86 should be reclassified from a “variant under monitoring” in that country to a “variant of concern.”

In an update posted Friday, the group concluded that BA.2.86 doesn’t meet its definition of a variant of concern because it doesn’t have any evidence that the profile represents a harmful change to its biological properties or a growth rate suggesting it would move at least as fast as or faster than currently circulating variants.

The group said that two samples of the virus are being cultured in the UK and that data from those lab experiments are likely to be at least one or two weeks away. Meanwhile, the group is watching for results from international partners.

They, like the rest of the world, are waiting for BA.2.86 to show its hand.

Saudi Crude Oil Exports Crash In August

Saudi Arabia’s crude exports fell sharply in August as the kingdom leads an effort by the OPEC+ alliance to curb production and bolster oil prices.

Observed flows from the kingdom slumped to about 5.6 million barrels a day, the lowest since March 2021, data compiled by Bloomberg show. That compares with a revised 6.3 million barrels a day in July. Shipments to most major destinations, including China and the US, plummeted to multiyear lows.

The Organization of Petroleum Exporting Countries and allies including Russia are restricting supply in order to buttress the market, particularly amid signs of lackluster demand in major oil consumer China. Since July, Saudi Arabia has pledged to implement a unilateral production cut of 1 million barrels a day on top of existing curbs. Saudi officials didn’t immediately respond to a request for comment on August’s oil exports. Friday is the start of the weekend in the country. The figures compiled by Bloomberg, which are preliminary, are broadly in line with those from analytics firms Vortexa Ltd. and Kpler. Flows to China, the kingdom’s primary market, slumped to about 1.3 million barrels a day. That’s the lowest observed since June 2020, in the early months of the pandemic, when oil demand plummeted globally. China showed a new resolve to bolster its economy, a key engine of global crude consumption. Saudi exports to Japan and South Korea in August fell to the lowest levels since Bloomberg began tracking them in 2017. Shipments westward also plunged. Observed cargoes to the US were just 81,000 barrels a day, the smallest volume observed in a least six years.

However, that may change as vessels hauling roughly 24 million barrels of Saudi crude that loaded last month still haven’t signaled a final destination.

That means the numbers for specific countries — particularly long-haul shipments — are likely to rise in the coming weeks.

Saudi Arabia wasn’t the only Middle Eastern energy giant to curb flows in August. Shipments from Kuwait — OPEC’s fifth-largest producer — fell to about 1.5 million barrels a day, the lowest since at least late 2016.

Shipments to China, the biggest buyer of Kuwaiti barrels, plunged by about 45%. Crude has rallied since late June as Saudi Arabia’s flows dwindle to multiyear lows, Russia deepens its commitment to the price-support effort and China ramps up measures to strengthen its economy. $ 85.00 WTI is a huge psychological level,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth. “To break through and hold we will need confirmation of Saudi-Russia cut extensions and confidence that China stimulus has started to take hold and improve sentiment there. I think we will break above $85 and hold, but we may test and fail a few times first.” Timespreads in both the near term and further out are flashing signs of strength, too.

US crude’s prompt spread has surged to the strongest level since November as inventories in the key storage hub of Cushing, Oklahoma, continue to be drawn down.

The closely watched spread between the nearest two December contracts for WTI skyrocketed to the widest in a year. Bets on $100 oil are also rising as supplies tighten. Open interest on $100 call options over the next 12 months has risen from about 80,000 contracts in the middle of July to 120,000 today.

BlackMask Pod Cast: 

One Benji for a Barrel

Oil Gets Boost On OPEC Output Cuts….. Knocking on Heavens Door ($100 a Barrel)

(Reuters) – Analysts have raised their 2023 oil price forecasts for the first time in four months with OPEC+ output cuts expected to keep supply tight, offsetting risks to demand from a stalling economic recovery in China, a Reuters poll showed on  Thursday. A survey of 37 economists and analysts forecast Brent crude LCOc1 would average $82.45 a barrel in 2023, up from July’s $81.95 consensus.

(NB: What bullshit. Brent oil has been above $82.99  since July 27th. These assholes are paid billions of dollars by the funds for this dool) 

Brent has averaged around $80.6 a barrel so far this year.  West Texas Intermediate (WTI) U.S. crude CLc1 is seen averaging $77.83 a barrel this year, above the previous month’s $77.20 forecast. “Though chances of a deep recession in the West have taken a backseat, the China demand boost expected in the second half of 2023 is probably off the table as well,” Suvro Sarkar, energy sector team lead at DBS Bank, said. NB: China is opening up from serius lock downs… And the governemnt is slowly putting in place massive stimulus packages. Maintaining oil prices at current levels will require a significant level of supply discipline from the Organization of the Petroleum Exporting Countries and allies led by Russia (OPEC+), Sarkar added. Most analysts polled by Reuters expect top exporter Saudi Arabia to extend its 1 million barrel-per-day voluntary supply cut, which is in addition to the cuts put in place by the wider OPEC+ group. That could see global benchmark Brent prices climbing to an average of $85.65 a barrel in the fourth quarter, the poll showed.

“We forecast that the market will fall into significant deficit in the third and fourth quarters of 2023,” said Matt Sherwood, Lead Commodities Editor at the Economist Intelligence Unit.

After tapping strategic petroleum reserves, many governments will need to rebuild stocks, adding to upward pressure on demand, Sherwood added. Global crude demand is expected to increase by up to 1.7 million barrels per day in 2023, the poll showed. Most analysts expect the bulk of oil demand growth this year and next will come from Asia and primarily China despite its weakening economy, although some sounded a note of caution. “China is key for oil demand growth projections,” said Julius Baer analyst Norbert Rücker. believe that its contribution to growth remains overestimated.” NN : No matter what they have to do China will create a booming economy AND OPEC+ Russia and the Saudis will get $100 oil. And sleepy crepy your president will kiss Saudi as to get reelected. REGARD this oil rally as paper training of Americans. You want oil we want nukes and the most sophisticated weapon you make.

China Ramps Up Campaign to Boost Economy, Currency

(Bloomberg) — China intensified efforts to stimulate the economy and support its currency, as investor concerns over the growth outlook persist. The central bank will trim the amount of foreign currency deposits banks are required to hold as reserves for the first time this year, the People’s Bank of China said Friday. The move came hours after authorities announced fresh stimulus for the beleaguered property sector and unveiled plans to expand tax breaks for child and parental care and education. The steps are the latest efforts to shore up confidence in the world’s second-largest economy, which is sagging under the weight of the persistent housing crisis, waning global demand and rising unemployment. Authorities have so far resorted to a drip-feed of targeted measures, avoiding the big-bang stimulus approach they deployed during the 2008 global financial crisis amid concerns over elevated debt levels.

“The policy package exceeds market expectations,” said Zhaopeng Xing, senior China strategist at Australia & New Zealand Banking Group Ltd. “Confidence will be boosted in the near term. We still need more evidence to confirm if it marks a turnaround.”

Financial institutions will need to carry just 4% of their foreign exchange deposits in reserve starting Sept. 15, the PBOC said, compared to the current level of 6%. The move effectively boosts the amount of foreign currency available in the local market, making it relatively more appealing for traders to buy the yuan. The offshore yuan rose as much as 0.5% against the dollar before paring gains to trade 0.1% stronger. A gauge tracking Chinese property developers rose as much as 2% before halving thhe advance. The broader CSI 300 Index climbed 0.5%, also helped by figures showing an unexpected expansion in manufacturing activity. Metals including aluminum and copper rallied. Hong Kong’s stock market was closed due to a typhoon. With the property measures and the so-called FX RRR cut both being announced before the market open, “there could be some element of that timing being used to help sustain China assets, especially with the PMIs giving some positive signals,” said Eddie Cheung, senior emerging market strategist at Credit Agricole CIB in Hong Kong. “But so far, the reaction has still been pretty contained.”

China’s currency slid toward its weakest level since 2007 against the dollar in August, after a surprise interest-rate cut failed to boost investor sentiment damaged by ongoing economic weakness. It has fallen around 5% this year amid the nation’s widening rate divergence with the US, and is among Asia’s worst performers next to the yen and the Malaysian ringgit. NB: a lower currency value subsidizes China exports… Its a good thing.

The PBOC has ramped up support for the currency via tools such as setting a stronger-than-expected daily reference rate, prompting state banks to sell dollars and tightening offshore yuan liquidity to squeeze shorts. “As the yuan is the anchor of all the asset classes, authorities are trying to stabilize the broader financial markets through the measure,” said Hao Hong, chief economist of Grow Investment Group. Together with stronger-than-expected yuan fixings and the PBOC’s issuance of offshore bills, the FX RRR cut shows that the central bank cares about the 7.3 level for the yuan, he said.

Recent economic data has shown signs of improvement. The Caixin manufacturing purchasing managers index rose to 51 in August, the highest reading since February, figures showed Friday. The numbers came a day after the official manufacturing PMI showed the contraction in activity easing as new orders and production improved.

To boost demand in the property sector, authorities moved to allow the largest cities to cut down payments for homebuyers and encouraged lenders to lower rates on existing mortgages. That may help homeowners save at least tens of billions yuan in annual interest payment and spur household spending, according to state media reports. The latest measures are “well designed to stimulate consumption while avoiding inflating more property bubbles,” said Chang Shu, chief Asia economist for Bloomberg Economics. She anticipates stimulus will add about 1 percentage point to economic growth this year and 1.1 percentage points in 2024. Ending the two-year housing slump (caused by lockdowns) is key to reviving growth because the sector and related industries make up about a fifth of the economy. Underscoring the challenge, sales by the country’s largest developers fell 34% in August from a year earlier, a report showed Thursday, and Country Garden Holdings Co. — the former No. 1 — is on the brink of default. On the tax front, China unveiled steps on Thursday to increase personal income tax deductions for child care, parental care and children’s education spending. They are the latest steps to address the country’s rapidly changing demographics and boost household consumption. “Policy momentum is clearly picking up,” Citigroup Inc. analysts including Xiangrong Yu wrote in a note. “This macro backdrop could be more supportive for China assets.” NN: China is alive and well. Talk of its demise are greatly exaggerated,