China’s crude oil imports from Russia soared to an all-time high of 2.29 million barrels per day (bpd) in May as refiners in the world’s top crude oil importer continue to buy discounted Russian oil. China’s imports of Russian crude oil jumped by 15.3% compared to May last year and surged by 32.4% compared to the 1.73 million bpd crude imports from Russia in April, per data from the Chinese General Administration of Customs cited by Reuters. Saudi Arabia, Russia’s main competitor in the Chinese market and Moscow’s partner in the OPEC+ deal, shipped 1.72 million bpd of its crude to China in May, down by 16% month-on-month. Russia again overtook Saudi Arabia as the top supplier of crude oil to China in May, after the Kingdom held the top spot briefly in April. Early this year, Russia was the single largest crude oil supplier to China in January and February, overtaking Saudi Arabia, which was the number-one supplier of oil to China last year. China and India are the key export outlets for Russian crude and oil products now that Russian exports are embargoed in the EU and under a price cap to countries that adhere to the $60 a barrel price cap for Russian crude oil. China and India accounted for at least 56% of total Russian exports of crude and products in May, the International Energy Agency (IEA) said in its monthly report last week. India’s oil imports from Russia continued to surge as cheaper Russian crude exports find more and more buyers in the world’s third-largest crude oil importer. India’s Russian oil imports in May alone, at 1.96 million bpd, were higher than the 1.74 million bpd in India’s combined imports from the next four largest suppliers – Iraq, Saudi Arabia, the United Arab Emirates (UAE), and the U.S. Russian oil accounted for a massive 42% of all Indian crude imports, compared to negligible volumes India had imported before the Russian invasion of Ukraine. NN: The triple bottom appears to be holding in oil. And the mighty machine that is the Chinese economy is indeed reopening and it IS for SURE consuming record amount of oil. The Chinese psyche has forever changed. To suggest an economy with over 5% GDP growth is slowing is Ridiculous. In fact China has emerged as the worlds 2nd largest economy. An in fact it will soon overtake deeply in debt the US. A new powerhouse has arrived on the world in all areas. Its no longer an emerging economy. It has arrived. And it energy driven and energy consuming world conquering Behemoth.
Fed’s Jefferson vows to tackle inflation, banking sector stress……. Fed’s Cook: Inflation grave threat to US economy……. Fed’s Barkin: Inflation stubbornly persistent…… Fed: Job market dictates inflation in some sectors
United States Federal Reserve Board Governor Philip Jefferson (pictured) expressed gratitude for being nominated for the position of vice chair of the Fed’s Board of Governors, pledging to remain attentive to the challenges facing the economy, including inflation, banking sector stress and geopolitical instability if he is elected. Jefferson further reiterated his commitment to using his expertise to pursue the goals assigned to the Federal Reserve by Congress, namely maximum employment and price stability.
Fed’s Cook: Inflation grave threat to US economy
United States Federal Reserve Governor Lisa Cook will tell the Senate that high inflation is a “grave threat to sustaining the expansion of the American economy,” according to her prepared remarks released on Tuesday. She will vow to stay focused on inflation “until our job is done” if elected to the Fed’s Board of Governors. Cook will say that the US economy is at a “critical juncture” and that the Fed must keep monitoring inflation but also stresses in the banking sector. She will reiterate that the US banking system is “sound and resilient” but that it can be impacted by wider geopolitical uncertainty.
Fed’s Barkin: Inflation stubbornly persistent
Federal Reserve Bank of Richmond President Thomas Barkin said on Friday that inflation in the United States “has proven stubbornly persistent.” “It’s hard to say we’re approaching our target when we haven’t yet hit it even for one month” since the introduction of tighter monetary policy, he noted in a speech before Maryland Government Finance Officer Association, adding that he has yet to be “convinced, both that demand is settling and that any weakness is feeding through to inflation.” Barkin pointed out that, if upcoming data disappoints, he would be “comfortable doing more” on monetary policy even if it “creates the risk of a more significant slowdown.”
Fed: Job market dictates inflation in some sectors
Chances for slowing down price growth for core services that exclude housing in the United States could be contingent on a “further easing of tight labor market conditions,” the US Federal Reserve’s Federal Open Market Committee (FOMC) stated in its new Monetary Policy Report released on Friday. The overall jobs market in the country is still “very tight,” but labor demand has “eased in many sectors” and labor supply has improved, the Fed noted. There is “considerable uncertainty” regarding upcoming monetary policy moves, the central bank also warned. Addressing the recent commercial banking crisis, the Fed revealed that “the broader banking sector maintained substantial loss-absorbing capacity and ample liquidity” despite the turmoil. NN: The stock market is in acute denial. The Fed is not done raising Fed Fund rates. THE CORE INFLATION RATE IS RUNNING OVER 5%. , Inflation is still way above the Feds target of 2% and they will not be raising the target. In fact the only thing they will be raising are Fed Funds Rate. Certainly not lowering rates as Wall Street believe. I am reminded of a poor soul on death row having his last meal. As he was eating a tube of ice cream they came to take him to the death chamber. He handed the half eaten tube to a guard and asked him to put it in the freezer. The surprised guard asked him why? The dead man walking replied i want to finish it when i get back. This Wall Street stock market rally is a half eaten tub of ice cream, on stock market death row, that will soon be melting in the blazing sun of further rate increases.
WTI Drops As Demand Fears Take Over Markets
WTI oil slid on Tuesday morning to just above $70 per barrel—an important psychological threshold for the U.S. crude oil benchmark. The catalysts behind the moves are generally demand-based. In a show of no confidence in its economy, China slashed its main benchmark lending rates for the first time in nearly a year on Tuesday—by 10 basis points for its one-year loan prime rate. As crude oil’s number one importer, a weak Chinese economy spells trouble for global crude demand. Lending credence to China’s economic woes was Goldman Sachs’ Sunday forecast on China’s economy, which included phrases like “fizzled out” to refer to China’s post-Covid recovery. The demand concern doesn’t stop with China. The European Union has seen two consecutive quarters of economic contraction thanks to inflation and slowed consumer spending. Economic output in the EU fell during Q1, adding to the fears that a global slowdown could dent oil demand. The largest bearish factor, however, is OPEC+’s production quota cuts. While this would seem in theory to restrict crude oil supply, the move is a testament to the group’s likely outlook on crude oil demand—mainly crude oil demand from China. The price drop, however, was limited by expectations that oil demand will grow in China and India in the second half of the year. Meanwhile, U.S. crude oil production has rallied over the last two weeks to 12.4 million bpd, a rise of 200,000 bpd from the beginning of the year. WTI is still trading above the lows seen on June 14 and June 15, when the U.S. benchmark prices sagged to near $68 per barrel.
Stocks Slip as Investors Worry If Rally Has Legs
Stocks edged lower on Tuesday as the second-quarter rally cooled with investors jittery ahead of Powell’s testimony later in the week. Treasuries rose. US equities pared losses after the S&P 500 closed in on a 1% drop, the stocks gauge had traded at 14-month high last week. The tech-heavy Nasdaq 100 wobbled as shares of Tesla Inc. buttressed both benchmarks from deeper losses. Nike Inc. fell on inventory concerns while PayPal Holdings Inc. climbed after reaching a loan accord with KKR & Co. Investors caught between fear of missing out and concerns markets have run too far, too fast are contending with overblown valuations and hawkish signals from the Federal Reserve. Bullish positioning in US equity futures grew last week, taking it to the most extended levels for the S&P 500 and Nasdaq 100 in data going back to 2010, according to Citigroup strategists. The AI frenzy has been driving much of the recent gains and is sure to be a topic during second-quarter conference calls. “The issue is going to be: to what degree does that show up in fundamentals?” Scott Chronert, global markets strategist at Citigroup, told Bloomberg Television. Earnings estimates have also been ratcheting higher. “What we’re going to run into is this disconnect with how hard the market has run versus where earnings expectations are,” he said. The path of US monetary policy is another wild card. Federal Reserve Chair Jerome Powell will give his semi-annual report to Congress on Wednesday. Policymakers at the Fed kept interest rates unchanged at their latest meeting but warned of more tightening ahead. Investors also await the outcome of policy meetings in Turkey, the UK and Switzerland. John Hancock Investment Management co-Chief Investment Strategist Matthew Mishkin warns about the lack of risk being priced into the market during an interview with Lisa Abramowicz on “Bloomberg The Open. “Our skepticism around the sustainability of the rally in US market-cap weighted indexes stems primarily from continued investor belief that the Fed is bluffing on holding rates higher for longer,” Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, wrote in a note. “If a favorable soft landing does materialize, the Fed will have no incentive to cut rates, especially if labor markets are still relatively resilient,” she added. “‘Goldilocks’ is at risk. Watch real rates, which would likely creep higher amid a strong economic soft landing.” The Fed decision last week came with forecasts for higher borrowing costs of 5.6% in 2023, implying two additional quarter-point rate hikes or one half-point increase before the end of the year. That contrasts with market pricing for some 20 basis points of tightening in the remainder of the year. “Generally speaking a high-multiple environment is only accompanied by a declining policy rate when earnings have collapsed,” Mike O’Rourke of JonesTrading wrote. “It will take a reality check in equities along with economic headwinds before rate cuts emerge. High stock multiples and a high policy interest rate are not a relationship that can be sustained in the long term.” US Treasuries yields traded lower after an earlier bounce amid an unexpected surge for housing starts in May, the most since 2016. The yield on the 10-year fell 4 basis points to 3.72% while the policy-sensitive two-year was at 4.68%. “This is strong data,” Sonal Desai, chief investment officer for Franklin Templeton Fixed Income, told Bloomberg Television. “It continues to feed into the narrative that housing, new starts, are not going to be the first place which collapsed.”
Happy Juneteenth Celebrations….. Gun violence erupts across America…… Mostly among descendants of slaves…
Juneteenth holiday horror: Four people are shot dead and at least 42 others injured so far this weekend as gun violence erupts across the nation – from Illinois to Missouri
- At least 20 people were shot, one fatally, during a Juneteenth celebration early Sunday morning in Willowbrook, Illinois
- The gunfire erupted during an illegal street takeover attended by at least 300 people overnight outside of the Willowbrook shopping center
- At least five people were killed and dozens injured in several other shootings across the country during the holiday weekend
Five people were killed and at least 42 were injured in multiple shootings as violence erupted across the country over the holiday weekend. A shooting at a Juneteenth celebration in a suburban Illinois town left one person dead after at least 20 people were shot outside a shopping center overnight. It happened around 12:30 a.m. on Route 83 near Honeysuckle Lane in Willowbrook, Illinois, Battalion Chief Joe Ostrander with the Tri-State Fire Protection District told WLS. Witnesses said the massive mostly black crowd of more than 300 people had gathered for a Juneteenth celebration that turned violent. In an update later on Sunday morning, the DuPage County Sheriff’s Office said at least 20 people had been shot, one fatally. At least one person is in critical condition, while the others suffered ‘graze wounds.’ The shooting in Illinois was just one of several overnight acts of violence on this holiday weekend just ahead of Father’s Day and Juneteenth on Monday. One killed after 10 people under the age of 18 are shot in Missouri One minor was killed after at least 10 people under the age of 18 were shot in St. Louis, Missouri early Sunday morning. The St. Louis Metropolitan Police Department said the shooting happened in the area of Washington Avenue and 14th Street around 1:45 a.m., KMOV-TV reported. Witnesses told the KMOV that the shooting took place inside a building. One of the teens was pronounced dead at the scene. The names of the victims and the conditions of those wounded in the shooting were not immediately available. Two dead, three injured in shooting near Washington state music festival; suspected gunman arrested. Two people were killed and three were injured in a shooting near a Washington state campground area hosting people attending a nearby music festival Saturday night, police said. The Grant Count Sheriff’s Office received a report of a shooting shortly before 8:30 p.m. at the camping area near the small city of George, 149 miles east of Seattle. Officers pursued the suspect, who was then taken into custody. The shooting occurred on the campgrounds adjacent to the concert stages, the sheriff’s office said. Concert organizers described the location as an ‘overflow camping area.’ KREM-TV reported the shooter was among the three injured. That was according to Kyle Foreman, public information officer with the Grant County Sheriff’s Office. Pennsylvania trooper, suspect killed in shootout. A state trooper and a suspect were killed Saturday afternoon in a shootout in central Pennsylvania, hours after the suspect seriously wounded another trooper, state police said. Police in Juniata County said a man engaged troopers at about 12:45 p.m. near the Lewistown barracks and shot one trooper, who was taken to a hospital with serious injuries. Authorities found the man shortly before 3 p.m. in Walker Township. Eight wounded in shooting during pool party at California home Eight people were injured in a shooting that unfolded during a pool part at a Southern California home on Saturday. Police responded to the scene in Carson, south of Los Angeles shortly after midnight to find the victims ranging in ages from 16 to 24. Five were found at the home with injuries to the head, back and upper and lower body areas, the Los Angeles County Sheriff’s Department said in a statement. The victims were taken to hospitals, and two were listed in critical condition. Authorities said they received a call two minutes later after a vehicle crashed into a wall nearby. They found a 16-year-old boy suffering from a gunshot wound, the statement said. More than a dozen detectives are investigating, authorities said. NN BlackMask Blog:
Juneteenth Mascaras Banned Story
Fed’s Waller: Policy shouldn’t change over some banks collapsing… He is right BUT Soon a LOT of banks will be collapsing
(Bloomberg) — Federal Reserve Governor Christopher Waller said it’s not clear that recent banking strains will lead to significantly tighter lending conditions in the US, adding that officials should not allow worries about a few lenders to interfere with their inflation fight. “Let me state unequivocally: The Fed’s job is to use monetary policy to achieve its dual mandate, and right now that means raising rates to fight inflation,” Waller said Friday. “I do not support altering the stance of monetary policy over worries of ineffectual management at a few banks,” rebutting the argument by some critics that the Fed should take into consideration the losses on banks’ balance sheets spurred in part by higher rates. Waller commented in remarks at an event in Oslo organized by the Norges Bank and the International Monetary Fund. Fed officials paused their interest-rate hikes this week after 10 straight increases to allow more time to evaluate how the economy is being affected by higher rates and recent banking strains. Policymakers also signaled borrowing costs will need to go higher than previously expected to tame persistently high inflation.
Data out this week showed headline inflation slowed but core prices excluding food and energy continued to rise at a pace that’s concerning for Fed officials including Waller.
“Core inflation is just not moving and that’s going to require probably some more tightening to try to get that going down,” he said. Wednesday’s decision left the benchmark federal funds rate in a target range of 5% to 5.25%. Fresh projections from policymakers showed they see interest rates rising to 5.6% this year, according to median forecasts, up from 5.1% in March. Waller, who is known as one of the more hawkish Fed officials, said on May 24 that he wanted to learn more about how the bank failures from earlier this year may contribute to a pullback in lending that could slow growth.
“It’s not like 2007-08, where banks were sitting with some really bad, toxic assets that were never going to get better,” Waller said in response to a question Friday. “People got scared, they ran, we stepped in, created liquidity facilities, replaced some of that deposit funding.”
He continued: “Right now, everything seems to be calm in the banking system.” NB: its the quiet before the storm. Waller said the central bank has separate, targeted tools to address financial stability. He also said the tighter credit conditions seen so far are not out of step with a trend visible before the failures of several regional US banks. “While lending conditions imposed by banks have tightened since March, the changes so far are in line with what banks have been doing since the Fed began raising interest rates more than a year ago,” Waller said in his remarks. “That is, it is still not clear that recent strains in the banking sector materially intensified the tightening of lending conditions.” NN BlackMask Podcast:
Feds deep dark secret: banking system in trouble again
US: Russia’s oil revenues nearly cut in half….. Oil extends gains, surges 3%
United States Treasury Deputy Secretary Wally Adeyemo claimed on Thursday that the oil revenues for the Russian government in the first five months of 2023 are almost 50% lower compared to the same timespan in 2022. Revenues have cratered despite Moscow exporting more oil than it did in February 2022 and the escalation of the conflict in eastern Europe as Russian oil is sold at a 25% discount compared to other global oil, Adeyemo said in remarks prepared for delivery before the Center for a New American Security (CNAS). Russian government’s changes to its oil tax policy “will constrain Russia’s oil companies going forward, leaving them with fewer funds to invest in exploration and production and over time diminishing the productive capacity of Russia’s oil sector,” Adeyemo asserted. Although the US does not detect “widespread signs” of sanctions evasion, it will remain “laser-focused” on that issue, according to the Treasury official.
Oil extends gains, surges 3%
Crude futures extended gains on Thursday, rallying more than 3%, as investors digested the Federal Reserve’s decision to keep interest rates unchanged. Meanwhile, prices were also supported by Chinese data that showed the country’s oil refinery throughput in May rose 15.4% on an annual basis. Brent for settlements in August jumped 3.44% to sell for $75.73 per barrel at 2:05 pm ET and West Texas Intermediate (WTI) for July delivery climbed 3.46% to go for $70.72 per barrel at the same time. NN: We have had a break out. Not a velocity move to the upside yet. The Spin Mysters of Wall Street using their AI disinformation tools are have a hard time keeping oil in the wells and prices down…..
Apache Halts Drilling In The UK North Sea
https://youtu.be/HLAphA4HXPs
Apache Corporation is halting drilling in the UK North Sea, cutting jobs in Britain, after the latest change to the UK Energy Profits Levy, commonly referred to as the windfall tax. The U.S.-based corporation, which is one of the top ten producers of oil and gas in the UK North Sea, has said that the windfall tax and the challenging regulatory environment are making its UK operations less competitive. Apache has also confirmed the suspension of drilling activities will lead to job losses in its UK division. “We are reassessing our investments, as we consider the challenging UK macro environment with its increasingly costly and burdensome tax and regulatory regime,” a spokeswoman for Apache told media. “Given the business climate for the oil and gas industry in the UK, these assets have become less competitive in comparison to the rest of our portfolio,” she said. Last week, the UK government put a price floor to the windfall tax, but this price floor will only trigger a return to a 40% marginal tax rate on North Sea oil and gas production, compared to the current tax rate of 75%, if both average oil and gas prices fall to, or below, $71.40 per barrel for oil and £0.54 per therm for gas, for two consecutive quarters. According to Ryan Crighton, policy director at Aberdeen & Grampian Chamber of Commerce, UK gas prices are unlikely to drop to those levels, “So, basically, it will never be triggered.” “The Chancellor needs to work with the industry to get this right, because billions of pounds worth of investment and thousands of new jobs could be created in the North Sea in the right conditions,” Crighton said. “The alternative is a levy which risks accelerating the decline of our oil and gas sector at a pace which jeopardises the skills and investment required to deliver the UK’s net zero plans.” After the UK raised the windfall tax to 35% at the end of last year, Harbour Energy, the biggest oil and gas producer in the UK North Sea, backed out of the latest licensing round aimed at awarding more than 100 new licenses. Shell has said it would be re-evaluating each project comprising its $30.5 billion (25 billion pounds) planned investment in the UK energy system, and TotalEnergies has said it would slash its investment in the UK by 25%. NN: One of the worlds great oil fields the brits are pissing away. At one time Britain was a great oil and gas exporter. Bringing a lot of money into their economy. For no other reason then stupidness Britain imports most of its energy. All pissed away by stupid policy decisions. Vast underseas proven oil reserves will never be tapped….. Some crazy shit.
China’s industrial output up 3.5% in May…. Retail sales in China surge by 12.7% in May….. BUT China’s Central Bank Ramps Up Rate Cuts
Industrial production in China increased by 3.5% in May compared to the same month in 2022, according to a report by the National Bureau of Statistics on Thursday. In the first five months of the year, the industrial output was 3.6% higher than the same period in 2022. The supply of electricity, thermal power, gas and water grew by 4.8% year-on-year, manufacturing went up by 4.1%, while mining lost 1.2%. In terms of products, the output of solar cells, new-energy vehicles and service robots rose by 53.1%, 43.6% and 34.3% respectively from May 2022.
Retail sales in China surge by 12.7% in May
Retail trade in China was up by 12.7% in May on a yearly basis, the National Bureau of Statistics said in its latest release on Thursday. Year-to-date, retail sales increased by 9.3%. The retail sales of goods grew 10.5% annually, while catering jumped 35.1%. Online retail sales rose by 11.8% and represented 25.6% of the total retail sales of consumer goods.
China’s Central Bank Ramps Up Rate Cuts as Economy Weakens
China’s central bank ramped up its monetary stimulus to help spur the economy amid signs of a weakening property market, a slump in business investment and record joblessness among young people. The People’s Bank of China lowered the rate on its one-year loans — or medium-term lending facility — by 10 basis points to 2.65%, the first reduction since August. That’s likely to prompt banks to lower their lending rates next week. The widely anticipated move came shortly before official data showed economic activity weakened in May. Growth in industrial output slowed to 3.5% from 5.6% in April, while retail sales grew 12.7%, below expectations. Fixed asset investment by private businesses contracted in the first five months of the year, while property investment deteriorated further. With evidence mounting of a downturn, Beijing is now shifting its stance to provide more stimulus to the economy. Economists expect the PBOC to cut interest rates further this year and give banks a cash boost so they can keep lending. The State Council is also expected to discuss a broad package of stimulus proposals, Bloomberg News reported earlier this week, with specific support geared toward the ailing real estate industry. Beijing is still on track to meets its growth target of around 5% for this year. Other measures are likely to follow, including “targeted support to the housing sector, increase in policy bank lending, and possibly additional local special bond issuance quota.”
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The National Bureau of Statistics said the foundation of the economy’s recovery “is not yet solid,” and focus needs to be on repairing and expanding demand. The unemployment rate remained relatively elevated at 5.2% in May, while the jobless rate for young people between the ages of 16 and 24 rose slightly to 20.8%, a new record high since data became available in 2018. The PBOC timed its easing just as the Federal Reserve paused its rate-hiking cycle for the first time in 15 months, while still signaling further tightening ahead. The widening gap between US and Chinese rates have fueled capital outflows and put pressure on yuan, which is down more than 3% against the dollar this year.
The PBOC also provided 237 billion yuan ($33 billion) of medium-term loans, more than the 200 billion yuan maturing in June. The cut to the one-year MLF rate was largely expected after a key short-term rate was reduced by the same magnitude on Tuesday. The two rates are usually adjusted together.
The signal from the PBOC “is very important because it’s a reversal of policy direction,” Dong Chen, head of Asia macroeconomic research at Pictet Wealth Management, said in an interview on Bloomberg TV. “Now policymakers have to press the gas pedal a lot harder. In the near term, we need continuous monetary and fiscal support.”
The State Council could discuss the stimulus measures as soon as Friday, according to people familiar with the discussions, although it’s unclear when the measures will be announced or implemented. The Economic Daily also said in a front-page commentary on Thursday that China needs to take further steps to support the economy, including maintaining strong fiscal spending. “The biggest question is the general sentiment — households are saving more and corporations are not investing as much, because they are not certain about the future,” said Gary Ng, senior economist at Natixis SA. “Even if the central bank adopts more lax monetary policy now, it may not be too successful, because it ultimately depends on the general sentiments.” NN: What bullshit!! China’s massive economy is awakening. An it is transiting from a manufacturing to a service economy. And it is consuming records amounts oil oil…. No matter how the AI story tellers want to spin a China slow down……. Its a China speed up.
China increases oil import quotas 20% year over year……. markets could tighten significantly
SINGAPORE/BEIJING, June 14 (Reuters) – China has issued a third batch of 2023 crude oil import quotas, raising the total volume in the first half of this year to 194.1 million tonnes, up 20% from the same period last year, according to six people and documents on Wednesday. Thirty-three companies, mostly independent refiners, are receiving 62.28 million tonnes of allotments in this round, the six sources with knowledge of the matter said and documents reviewed by Reuters showed. That compares to 52.69 million tonnes issued by Beijing in June last year and a total released quota of 161.72 million tonnes over the first half of 2022. Zhejiang Petroleum & Chemical Co，a subsidiary of Rongsheng Petrochemical (002493.SZ), was granted 20.0 million tonnes in the new round of issuance. Hengli Petrochemical (600346.SS) and Shenghong Petrochemical received 3.0 million tonnes and 8.0 million tonnes, respectively. The rest of quotas were allotted to smaller-sized independent refiners, known as teapots, in the eastern Chinese province Shandong. Chinese independent refineries have been boosting imports of discounted crude oil essentially from Russia, Iran and Venezuela over the past months to improve refining margins amid lacklustre fuel and petrochemical demand in the country. Analysts estimate that refining margins at teapot refineries are more than double the level than at their state-backed counterparts. The flood of discounted feedstock prompted Chinese authorities to toughen scrutiny of crude oil quotas.
IEA warns markets could tighten significantly
The IEA in its latest report stated “that markets could tighten significantly in the near term as OPEC+ production cuts dampen the rebound in global oil supply.” however, forecasts improve over the 2024-28 period.
Global oil demand will grow by 2.4 million barrels per day (bpd) in 2023 to a record 102.3 million bpd, the IEA said in its monthly report on Wednesday.
At the same time, exploration and production investments are projected to reach their highest levels since 2015 in 2023. “Our projections assume major oil producers maintain their plans to build up capacity even as demand growth slows…the text added. “As always, there are a number of risks to our forecasts that could affect market balances over the medium term. Uncertain global economic conditions, the direction of OPEC+ decisions, and Beijing’s refining industry policy will play a crucial role in the balancing of crude oil and product markets.” NN: Oil is up $4.00 from its latest sucker plunge. As i documented this was a technical trade triple bottom. And fundamentally will be driven by record global oil consumption exceeding production. So i am going to sit back and enjoy the fun.