S&P 500 Monthly: Let me see if I understand this ...
Updated
Let me see if I understand this ...
Putin supports Iran. Saudi Arabia's arch enemy is Iran.
Trump phones both countries and suggests they make a deal.
Oil jumps on this and the market follows suit.
"According to the International Monetary Fund, Russia needs an oil price of roughly $40 a barrel to balance
its budget, while Saudi Arabia needs over $80 a barrel to balance its books. Both countries have huge
reserves, can borrow and can, of course, cut their budgets, but that means austerity."
Link: pbs.org/newshour/economy/why-russia-just-torpedoed-global-oil-prices
With coronavirus now spread worldwide, budgets are going to blow out exponentially as global economic activity and demand
demand falls off a cliff - so much for 'austerity'?
I may be somewhat naive, but does artificially raising the price of oil stimulate economic growth? Hmm ... I
would have though that a lower price might actually stimulate more demand provided of course the economy
was humming along or at a minimum on the road-to-recovery.
So, is Trump trying to protect the US shale producers or simply trying to get the market up as a measure of his
chances of re-election?
Let's see if the market continues to buy this ...
We have so far failed to fill the opening 2nd Quarter gap down.
Welcome to the 'b' (or '2' ?)
Putin supports Iran. Saudi Arabia's arch enemy is Iran.
Trump phones both countries and suggests they make a deal.
Oil jumps on this and the market follows suit.
"According to the International Monetary Fund, Russia needs an oil price of roughly $40 a barrel to balance
its budget, while Saudi Arabia needs over $80 a barrel to balance its books. Both countries have huge
reserves, can borrow and can, of course, cut their budgets, but that means austerity."
Link: pbs.org/newshour/economy/why-russia-just-torpedoed-global-oil-prices
With coronavirus now spread worldwide, budgets are going to blow out exponentially as global economic activity and demand
demand falls off a cliff - so much for 'austerity'?
I may be somewhat naive, but does artificially raising the price of oil stimulate economic growth? Hmm ... I
would have though that a lower price might actually stimulate more demand provided of course the economy
was humming along or at a minimum on the road-to-recovery.
So, is Trump trying to protect the US shale producers or simply trying to get the market up as a measure of his
chances of re-election?
Let's see if the market continues to buy this ...
We have so far failed to fill the opening 2nd Quarter gap down.
Welcome to the 'b' (or '2' ?)
Note
Breaking news …"Russia, Saudis Deny Trump "Expectation" Of 10 Million bpd Oil Production Cut"
(Update 1330ET): Well, it appears that we officially have no deal, because moments ago Russia's energy minister Novak made it clear that instead of cutting supply, Moscow will wait for demand to return:
RUSSIA'S NOVAK SAYS WE HOPE THAT GLOBAL OIL DEMAND WILL RISE IN A FEW MONTHS
Then Dow Jones made it clear that according to Saudi sources, Trump's tweet was nothing but baseless oil price manipulation:
SAUDI OFFICIAL SAY TRUMP'S TALK OF 10 MILLION BBL A DAY CUT OR ABOVE WAS AN EXAGGERATION
Finally, Moscow made it clear where to expect oil prices in the coming year:
RUSSIA IS SAID TO BASE REVISED 2020 BUDGET PLAN ON $20 OIL
Link: zerohedge.com/energy/oil-spikes-after-reports-trump-expects-proiduction-cut-15mm-barrels
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