Written by Gary
U.S. Oil Rig Count Sees Tiny Increase Amid Oil Price Rally (SPY +1.8%). Consumers unexpectedly paid down their credit cards for a 4th straight month.
The Market in Perspective
| Here are the headlines moving the markets. | |
 | Oil Flirts With $70 After The OPEC+ SurpriseBrent is now flirting with the $70 mark after OPEC+ shocked markets once again by refusing to bring more oil production online.In this week’s Global Energy Alert, our trading team delves into how an inflationary environment will impact oil stocks. Sign up today to get breaking news, expert analysis, and trading tips.Friday, March 5th, 2021Oil skyrocketed on Thursday after OPEC+ decided to hold off on easing production cuts for another month, surprising the oil market. WTI and Brent shot up more than 4%. During early trading on Friday, Brent surpassed |
| Offshore Oil & Gas Projects Set For Record RecoveryOperators are expected to commit to developing a record number of offshore oil and gas projects over the next five years, with deepwater projects set for the most impressive growth, Rystad Energy said in a new report this week.The energy research firm has defined in its analysis a project as committed when more than 25 percent of its overall greenfield capital expenditure (capex) is awarded through contracts.Offshore oil and gas development is not only set to recover from the pandemic shock to prices and demand, which forced operators |
| New Factory Could Reduce Green Hydrogen Costs By 20%Danish catalyst manufacturer Haldor Topsoe plans to build a large-scale facility to manufacture electrolyzers that would be used for green hydrogen production and potentially reduce the cost of green hydrogen by 20 percent. Haldor Topsoe plans to have its new facility for producing highly efficient solid oxide electrolyzers (SOEC) operational by 2023, the company said this week, while the electrolyzers from the factory could cut the costs of green hydrogen production by as much as 20 percent, Recharge reported. Haldor Topsoe said it would invest |
| U.S. Oil Rig Count Sees Tiny Increase Amid Oil Price RallyBaker Hughes reported on Friday that the number of oil and gas rigs in the United States rose by 1 this week. The total number of active oil and gas rigs in the U.S. is now at 403or 390 fewer than this time last year. The oil rig count increased by 1 this week, and the number of gas rigs stayed the same. The number of miscellaneous rigs also remained unchanged. The EIAs estimate for oil production in the United States for the week ending February 26 rose by 300,000 bpd to 10 million barrels, after suffering devastating losses in the |
| India: OPEC+ Decision Could Derail Oil Demand RecoveryThe worlds third-largest oil importer, India, is concerned that Thursdays OPEC+ decision not to lift oil production in April could hurt the consumption-led recovery in oil demand, Indian Petroleum Minister Dharmendra Pradhan told Reuters on Friday. As one of the largest crude-consuming countries, India is concerned that such actions by producing countries have the potential to undermine consumption-led recovery and more so hurt consumers, especially in our price-sensitive market, Pradhan told Reuters. On Thursday, the |
| U.S. Refiners Hit With Lower Fuel Demand From Key MarketsThe pandemic may be receding in some parts of the world, but it is still ravaging Mexico and Brazil, presenting another challenge to U.S. refiners as the two countries are among their key export markets. Bloomberg reports that Gasoline consumption in Mexico slumped to the lowest in eight months in January this year, and diesel sales in Brazil dropped to the lowest since May last year. Normally, Mexico accounts for two-thirds of U.S. gasoline exports, but with consumption dropping amid the pandemic, this is going to change. Demand for U.S. fuels |
| So long, sweatpants. Americans show signs they’re ready to get dressed up againAs retailers like Urban Outfitters, Gap and Nordstrom prepare for customers to refresh their wardrobes, they continue to face congested ports. |
| Dr. Scott Gottlieb says Covid mask mandates should be last virus mitigation measures liftedDr. Scott Gottlieb said governors are right to begin easing Covid measures on businesses as long as mask policies remain in effect. |
| New, energy-efficient trains are coming to the world’s oldest metro systemThe Piccadilly Line trains will replace rolling stock from the 1970s. |
| Retailers pay more to fly everything from bikes to hot tubs from China as U.S. port backup delays deliveriesHot tubs, vacuum cleaners and Peloton bikes are being shipped by air, which can take a couple of days from China instead of two to three months by ocean. |
| Saks Fifth Avenue owner spins e-commerce site into separate businessHBC, the owner of Saks Fifth Avenue, said it will split the luxury department store’s website into a separate business after raising $500 million. |
| Europe facing ‘uphill battle’ with Covid vaccines as Italy blocks AstraZeneca shipmentEurope’s coronavirus vaccine rollout has been thrust into the spotlight again after Italy blocked a shipment of Oxford-AstraZeneca vaccines to Australia. |
| Activist investor group says Kohl’s earnings show ‘best of worst’ in retail, urges changeThe group of activists looking to seize control of Kohl’s board published a letter saying the retailer’s latest quarterly financial results were lackluster. |
| Virginia gets close to legalizing recreational weed as other states eye cannabis tax windfallsVirginia finalizing its legalization of marijuana, while other states are calling for similar measures. |
| CDC study finds easing mask and restaurant rules led to more Covid cases and deaths, as some states move to lift restrictionsA new CDC study published on Friday found that local mask requirements and limited dining at restaurants can help reduce the spread of Covid-19. |
| The cost of mining for cryptocashBitcoin and ethereum have been on record runs higher in 2021, but mining for cryptocash is getting more expensive. |
| WHO says pandemic has caused more ‘mass trauma’ than WWII“And when there is mass trauma, it affects communities for many years to come,” WHO Director-General Tedros Adhanom Ghebreyesus said. |
| Detroit mayor rejects initial J&J vaccine shipment, saying Pfizer and Moderna are ‘the best’Detroit Mayor Mike Duggan said the city had enough supply of Pfizer and Moderna vaccines to cover demand from eligible residents. |
| PPT? Stocks Rescued By Biggest Intraday Dip-Buy Since 2011 EU Crisis BailoutsPPT? Stocks Rescued By Biggest Intraday Dip-Buy Since 2011 EU Crisis Bailouts “Be careful what you wish for” appears to be the lesson for stock investors this week as recovery and reflation hopes/hypes sent real and nominal rates soaring, triggering trouble in the momo/growthy names that have soared “to the moon” and neither Powell, Bullard, Evans, nor Kashkari would volunteer any resolution on “moar” via a ‘Twist’ or on the SLR overhang that has many worried. As real rates have spiked, ‘stonks’ have tumbled…
The Nasdaq is down 3 weeks in a row (worst streak since September), but the late-day sudden panic-bid pushed the S&P and Dow into the green for the week… |
| 88% Of COVID Deaths Occurred In Countries Where Over Half Of Population Overweight88% Of COVID Deaths Occurred In Countries Where Over Half Of Population Overweight A new report by the World Obesity Federation found that 88% of deaths in the first year of the pandemic occurred in countries where over half of the population is classified as overweight – which is defined as having a body mass index (BMI) above 25. Of note, BMI values above 30 – considered obese – are associated with ‘particularly severe outcomes,’ according to the Washington Post. On the other hand, in countries where less than half of the adult population is considered overweight account, the risk of death from COVID-19 is around one-tenth of countries with the higher proportion of overweight adults. Higher BMIs are also associated with an increased risk of hospitalization, ICU admissions, and the need for mechanically assisted ventilation. |
| Supreme Court Dismisses “Sanctuary City” Cases At Request Of Biden’s DOJSupreme Court Dismisses “Sanctuary City” Cases At Request Of Biden’s DOJ Authored by Tom Ozimek via The Epoch Times (emphasis ours), The Supreme Court has dismissed three pending requests to hear challenges to the Trump administration’s order to withhold millions of dollars in law enforcement funds from so-called sanctuary jurisdictions “states and cities that refuse to cooperate with Department of Homeland Security efforts to deport people residing in the United States illegally.
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| Consumers Unexpectedly Paid Down Their Credit Cards For A 4th Straight Month, Have “Uncharged”A Record $127BN In The Past YearConsumers Unexpectedly Paid Down Their Credit Cards For A 4th Straight Month, Have “Uncharged”A Record $127BN In The Past Year There appears to be a major discrepancy between BofA’s in house debit/credit card data, which showed a remarkable increase in credit card-funded spending in both January and February (the Texas-freeze induced drop notwithstanding)…
… and the Fed’s own consumer credit data aggregation, because according to the latest Consumer Credit (G.19) report, in December revolving debt, i.e., credit card debt, shrank for a fourth consecutive month declining by a whopping $9.9BN following a $2.8BN drop in December, $465MM drop in November and a $5.3 billion drop in October. In fact, this was the 10th decline in consumer credit in the past 11 months! |
| Ellesmere Port: Vauxhall plant pauses production as demand sagsThe owner of the Ellesmere Port plant says the halt is nothing to do with talks over its future. |
| Covid-19: English travellers face fines and losing flights without new permitAnyone travelling overseas from England from Monday will have to prove they are allowed to travel. |
| Sports Direct owner Mike Ashley warns of possible shop closuresMike Ashley’s Frasers Group says new business rates measures are “near-worthless” for large retailers. |
| Jerome Powell can roil markets now with just a wordPowell was right to point to the rising likelihood of a pickup in inflation, which, based on technical factors and current economic conditions, is more likely to be a one-off phenomenon than the start of a serious inflationary process. |
| After a week of wild flip flops, how will market pan out now?This was the first positive week for Nifty and Sesnex after two straight weeks of losses, but analysts believe there are more reasons for the market to fall than rise at least in the near term. |
| The Indian IPO that saw tepid bids 4 months ago is spinning money nowWhile many analysts believe the stock is priced to perfection, some others project it to rise up to Rs 3,000, which would mean a 100 per cent return on the issue price. |
| 26 February 2021 ECRI’s WLI Growth Rate Again Modestly Improves
ECRI’s WLI Growth Index which forecasts economic growth six months forward modestly improved and continues well into expansion. |
| : Italy’s ban on AstraZeneca exports to Australia raises fears of vaccine nationalismThis is the first use of new rules established by the European Union in January to better control the sourcing of COVID-19 vaccine doses within the bloc. |
| Bond Report: 10-year U.S. Treasury yield hits highest in a year, after 5 straight week gainsU.S. Treasury yields are higher on Friday after the February employment report from the Labor Department showed bigger-than-expected job gains. |
| : Bitcoin could prevent society from functioning and is an ‘extreme form of libertarian anarchism,’ warns this fund managerTim Bond, partner and portfolio manager at Odey Asset Management, believes bitcoin could prevent society from functioning in an efficient and ethical manner. |
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