The weakness in the price of Crude Oil in the face of all the turmoil in the Middle East is extraordinary. It certainly suggests that global economic growth remains subpar. Despite a sharp drop in Libyan output recently, OPEC production continues to hover between 36mbd and 38mbd. Non-OPEC output rose to a record 54.8mbd during July.
Contributing to that record high is US oil field production, which is soaring and reached almost 9.0mbd in early September. The US is now exporting 3.7mbd of crude oil and petroleum products.
Today's Morning Briefing: Losing Energy. (1) Interesting week. (2) Separatists are agitating in Scotland and Spain. (3) Draghi throwing more spaghetti on the wall to see if it sticks. (4) Oil and gasoline prices plunging. (5) Oil at $75 would be bad news for Ras-Putin. (6) A timely call to underweight Energy. (7) US oil output close to 9.0mbd. (8) Industrial commodity prices also losing altitude. (9) China has too much debt, corruption, and capacity. (10) Chinese output fell in August m/m. (11) Railways freight traffic on slow track in China. (12) China’s shadow banks are getting squeezed. (13) Focus on overweight-rated S&P 500 IT.
