Tag Archives: Politics

G-20: Beware of Protectionism and Devaluation

Global Economy, On the cover, Sin categoría

This article was published in El Confidencial on February 2013 and in The Commentator.

“Protectionism Teaches us to do to ourselves in time of peace what enemies seek to do to us in time of war”. Henry George.

The G-20 summit this weekend was fun. Like the famous Shaggy song “It Wasn’t Me”, everyone denied any currency war or protectionism. However, concerns about rising intervention are not irrelevant when economies are shrinking, as data showed in Germany, France or Italy, or in exhaustion, as we saw with industrial production in Brazil or Mexico. Continue reading G-20: Beware of Protectionism and Devaluation →

Commodities Weekly

Energy, Global Economy, On the cover, Sin categoría

It was a strong week in the oil market as Brent pushed through the $115/bbl to reach the highest level since April last year. Positive macro-economic data, coupled with the increased geopolitical risk premium provided a positive backdrop for the strong gains. In terms of fundamentals, OPEC production continued to slide in January, reportedly reaching the lowest level in 15 months. It is important to note that OPEC production is nearing the official production quota of 30mbpd level where it may stabilise. Similar to reports in December, reduction in production is largely attributed to a well-supplied market. Continue reading Commodities Weekly →

Commodities Weekly

Energy, Global Economy, On the cover, Sin categoría

Outperformance of WTI vs. Brent continued this week as the spread between the two benchmarks narrowed further to $15.5/bbl.

The WTI benchmark is receiving support from the start-up of the expanded Seaway pipeline, with the market factoring in this recent expansion in takeaway capacity (150 thousand b/d to 400 thousand b/d) as a precursor for a reduction of surplus crude oil inventories at Cushing over the coming weeks. It is important to note however, that in the meantime crude stocks continue to climb to new record highs.

Continue reading Commodities Weekly →

Commodities Weekly

Energy, Global Economy, On the cover, Sin categoría

It was an uneventful week in crude markets. Continued delays in North Sea shipments continue to support Brent. However, OPEC production continued to slide in December, reaching a 0-month low. Cut in Saudi production is the main reason for the decline and was originally started to offset the gains in Libyan and Iraqi production. The decline is also in line with comments from Saudi oil minister and OPEC secretary general that the oil market remains well supplied. Continue reading Commodities Weekly →