Category Archives: Energy

Energy

Oil Weakness and Stagnation Risks

The oil market has changed substantially over the past ten years.

The most important factor that explains the lower volatility and price impact in the face of geopolitical risks is that the United States no longer depends on OPEC. At the end of 2019, the United States reached a record in oil production, more than 12 million barrels a day, above Russia, 10.8 million barrels a day, and Saydu Arabia, 10.3 million barrels a day. The United States’ dependence on foreign oil purchases is the lowest ever, and if we consider North America (Canada. US and Mexico), the region is almost self-sufficient.

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Crude Oil Price 2019 & Insights from Daniel Lacalle

Crude Oil Price 2019 & Insights from Daniel LacalleKey Points Discussed (original link and summary by Richard Snow)

  • The Texas oil revolution
  • Diminishing effectiveness of monetary policy
  • Commodity prices and the Trade War ‘facade’
  • Perverse incentives and the inverted credit cycle
  • The Chinese debt load
  • Forecasts and trading strategies for 2019

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