Written by Gary
Oil rig count inches higher as prices drop, WTI crude settles down at 61.65. DOW closes down about 1.5% to wrap up turbulent week and month amid rising yields.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | India’s Largest Refiner To Invest $4.5 Billion To Boost CapacityIndian Oil Corporation (IOC), the countrys biggest refiner and fuel retailer, plans to invest US$4.46 billion (329.46 billion Indian rupees) to expand the processing capacity of its Panipat refinery by two-thirds to 500,000 bpd within three years. The refinery expansion project is set to boost petrochemicals production at the site, as well as specialty products that would contribute to de-risking the conventional fuel business of the company, Reuters quoted IOC as saying in a statement on Friday. Petrochemicals are expected |
| Why Oil Bulls Aren’t Backing DownWhile there is still plenty of potential new oil supply on the market, particularly from OPEC+, analysts remain very bullish and banks are beginning to talk about $100 oil.In this week’sGlobal Energy Alert, our research team delves into the role of natural gas in bringing peace to the Middle East.Sign up today to get breaking news, expert analysis, and trading tips.Friday, February 26th, 2021Oil prices took a breather on Friday after Brent traded just above $67 on Thursday. While downside risks remain, banks are now openly talking about |
| Extreme Winter Stopped Russia From Benefiting From Higher OPEC+ QuotaExtreme winter weather in Russia, at least more extreme than usual for Siberia, resulted in lower Russian oil production so far in February compared to January and lower than the countrys increased quota under the OPEC+ deal, Bloomberg reported on Friday, quoting data from the energy ministry it had seen. Under the latest compromise OPEC+ agreement from January, Russia is boosting its oil production by 65,000 bpd in each in February and March. Together with Kazakhstan, Russia was the only OPEC+ producer allowed to increase its output, while |
| Gold Plunges As Real Yields SurgeHaving broken below $1800 earlier in the week, after suffering a ‘death cross’, gold prices are plunging this morning – on heavy volume – as real yields soar. This is the lowest in 8 months…As real yields surge… When will people stop selling gold and silver and realize that rising inflation is not a one-time threat that the Fed will stomp out by raising rates and tightening monetary policy? Peter Schiff explains: “They [The Fed] are going to do nothing. The dollar is going to collapse, which is the mother of all tailwinds for gold. And so, |
| Oil Rig Count Inches Higher As Prices DropBaker Hughes reported on Friday that the number of oil and gas rigs in the United States rose by 5 this week. The total number of active oil and gas rigs in the U.S. is now at 402or 388 fewer than this time last year. The oil rig count increased by 4 this week, and the number of gas rigs increased by 1. The number of miscellaneous rigs remained unchanged. The EIAs estimate for oil production in the United States for the week ending February 19 fell sharply by 1.1 million bpd to 9.7 million barrels. It is the lowest production level |
| OPEC+ Compliance With Oil Production Cuts Jumps To 103%The OPEC+ group of producers complied at 103 percent with the oil output cuts in January, higher than the estimated compliance in December, Argus reports, citing three delegates from the alliance. In December 2020, the OPEC+ coalition saw its overall compliance with the original production adjustments at 101 percent, OPEC said at the end of the February monthly meeting of the OPEC+ panels. This compliance level is reinforcing the trend of high compliance by Participating Countries, OPEC said. According to Argus sources, |
| CDC director warns recent decline in U.S. Covid cases may have stalled as variants spreadThe CDC director warned Friday the recent decline in U.S. Covid cases may have stalled as variants spread. |
| As store owners sign more short-term leases, landlords are taking a risky bet on the future of retailLeases on about 1.5 billion square feet of retail space in the U.S. are set to expire this year, according to CoStar Group, or about 14% of the retail market. |
| Biden administration taps private companies, business groups for help in Covid fightThe White House urged businesses across the country to require masking and social distancing on premises and to help employees get vaccinated against Covid-19. |
| Israeli data suggest mass vaccinations led to drop in severe Covid cases, CDC study finds“Taken together, these results suggest reduced rates of severe COVID-19 following vaccination,” the researchers wrote. |
| Etsy CEO hopes to build more e-commerce market share no matter what happens with CovidEtsy CEO Josh Silverman told CNBC he hopes the online marketplace can outpace the growth of e-commerce overall, adding to its strong pandemic performance. |
| 5 things to know before key FDA panel votes on J&J’s single-shot Covid vaccine todayA key FDA panel is to vote on whether to recommend J&J’s Covid vaccine for emergency use, which would help pave the way for a third vaccine in the U.S. |
| Want to travel like a rock star? One celebrity RV company’s Covid pivot lets you do just that“We had to be very nimble and cut costs immediately and figure out a path through this,” Joey Hemphill of Hemphill Brothers Coach Company told CNBC. |
| How to watch the 2021 Golden Globes without cableThe 78th Golden Globes start at 8 p.m. ET Sunday on NBC. For those that wish to tune into the awards show, but don’t have cable, there are plenty of streaming options. |
| J&J says two trial participants had severe allergic reactions after getting Covid vaccineTwo people suffered severe allergic reactions shortly after getting Johnson & Johnson’s Covid-19 vaccine, a J&J scientist told an FDA panel. |
| Kelly Loeffler no longer a WNBA team owner as NBA approves sale of Atlanta DreamThe WNBA announced it unanimously approved the sale of the Atlanta Dream to Larry Gottesdiener, chairman of real estate firm Northland. |
| Virgin Galactic stock falls after test flight delays push back debut of space tourism serviceVirgin Galactic shares fell after the company revealed delays to its test flight program, with the launch of its commercial service pushed to 2022. |
| CDC scientist says the U.S. is ‘nowhere close’ to herd immunityThe presence of more transmissible coronavirus variants requires a higher proportion of the population to be immune to achieve the benchmark. |
| More travel hotspots are opening to people who work from homeFirst it was Barbados and Estonia, now it’s the Bahamas, Croatia, Dubai and Madeira. See the newest places where digital nomads can live and work abroad. |
| Bonds & Bullion Suffer Worst Month In 5 Years As Commodities & Crypto SoarBonds & Bullion Suffer Worst Month In 5 Years As Commodities & Crypto Soar Update: Into the close, bonds were panic-bid with 10Y Yields plunging 14bps – the best day for bonds since March 2020
Source: Bloomberg And 20Y Yields crashed over 20bps, almost erasing the entire week’s losses…
Source: Bloomberg *Â *Â * February saw a massive shift in the market’s perception of The Fed’s rate-hike trajectory… now pricing in more than 4 rate-hikes between 2022 and 2 … |
| Saudi Arabia “Completely Rejects” Khashoggi Murder Report As US Mulls Curbing Arms SalesSaudi Arabia “Completely Rejects” Khashoggi Murder Report As US Mulls Curbing Arms Sales update: Things are about to finally get more interesting for the decades-long ‘unbreakable’ US-Saudi relationship. Or perhaps it’s also the clearest confirmation yet on who is really in charge in the kingdom (it’s long been assumed that despite the sickly King Salman still being officially ruler of Saudi Arabia, in reality his son MbS maintains total control). Bloomberg reports of Riyadh’s reaction to the ODNI report that dropped early this afternoon, citing official state SPA:
The Kingdom of Saudi Arabia “categorically rejects the abusive and incorrect conclusions” the official statement said. Meanwhile…
* * * On Friday afternoon, over two years after the Oct.2018 brutal murder of journalist Jamal Khashoggi at th … |
| Canadian Pension Boss Quits After MidEast Trip For COVID Shot, Defying Govt AdviceCanadian Pension Boss Quits After MidEast Trip For COVID Shot, Defying Govt Advice The head of Canada Pension Plan Investment Board (CPPIB), Mark Machin, has resigned after travelling to the United Arab Emirates to be vaccinated against COVID-19, flouting Canadian government’s travel advice and drawing criticism.
Machin, 54, received Pfizer’s vaccine shot after arriving in the UAE with his partner this month, the Wall Street Journal reported on Thursday.
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| Watch: CNN’s Jim Acosta Flabbergasted After Journo Confronts Over Cuomo Media BlackoutWatch: CNN’s Jim Acosta Flabbergasted After Journo Confronts Over Cuomo Media Blackout CNN’s Jim Acosta was visibly flummoxed outside of CPAC in Orlando on Friday, after a crowd began chanting “CNN Sucks!” while he was trying to interview people – followed by an unexpected line of questioning from The Federalist’s David Marcus – who demanded to know why CNN isn’t covering two major scandals involving New York Governor Andrew Cuomo.
“When are you guys gonna start covering [Governor Andrew] Cuomo?” asks Marcus. Acosta, visibly perturbed by the interruption, started to claim “We do, we do cover that.” Marcus pressed on – at one point parrying an attempt to ‘box him out’ – telling Acosta: “No, you don’t. He killed 10,000 people and he’s being accused of sexual assault, and you guys want to talk about Ted Cruz.” To which Acosta shot back: “Let me just finish this interview and then I’ll talk to you, OK?” Marcus then demanded that Acosta opine on Cuomo’s scandals. “I’m here to do a job right now; I’m not … |
| Amanda Staveley loses High Court fight with Barclays over damagesA businesswoman who sued Barclays for hundreds of millions loses court case, but judge accuses bank of “deceit”. |
| British Airways owner IAG calls for digital health passesIAG, which owns British Airways and Iberia, makes a record loss after the pandemic grounds flights. |
| Budget 2021: ‘My benefits top-up is a lifeline – don’t take it away’A benefits top-up to help the poor survive lockdown is due to end – unless it is extended at the Budget. |
| Bond sale rescued by India dealers as rout sweeps across globeUnderwriters bought about 20% of the 240 billion rupees ($3.3 billion) of bonds on offer at a weekly sale, the Reserve Bank of India said in a statement Friday. |
| How US bonds triggered rupee rout on FridayThe local unit lost nearly 1.5 percent, the sharpest drop in value against the dollar since March 23, the day when New Delhi imposed a nationwide lockdown last year to prevent the virus from spreading. |
| Will the 2021 earnings bonanza really happen?According to Bloomberg Intelligence, analysts expect a whopping 23.2% increase in earnings per share among S&P 500 companies, up from 22.3% at the start of the year. |
| 19 February 2021 ECRI’s WLI Growth Rate Modestly Improves
ECRI’s WLI Growth Index which forecasts economic growth six months forward modestly improved and continues well into expansion. ECRI also released their coincident and lagging indicators this week. |
| Final February 2021 Michigan Consumer Sentiment Up From PreliminaryWritten by Steven Hansen The final University of Michigan Consumer Sentiment for February came in at 76.8, up from the preliminary of 76.2, down from January’s 79.0, and down from December’s of 80.7.
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| Americans can’t file their income taxes fast enough ” but they should brace for some unwelcome news in their 2020 refundsThe IRS has received approximately 21% more individual returns than the agency received last year by Feb. 7, which was 12 days into the tax season last year. |
| Bond Report: 10-year, 30-year Treasury yields book biggest monthly surge since Trump’s 2016 election victoryU.S. Treasury yields pull back Friday, but still left rates on long-dated Treasurys with their biggest monthly rise since Donald Trump’s presidential election victory in Nov. 2016 |
| : Dominating global fintech requires these things, says U.K. strategic reviewImmigration reform and changes to stock-listing rules are among the key policies the U.K. must adopt to protect one of the crown jewels in its massive financial services industry, according to a new strategic review. |
Written by Steven Hansen
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