Oil
plunged to the lowest level in more than six years in New York as a
government report showed that U.S. crude stockpiles unexpectedly
increased.
West
Texas Intermediate slipped more than 3.4 per cent after the Energy
Information Administration said crude supplies rose 2.62 million
barrels last week.
An 820,000 barrel stockpile decline was projected
by analysts surveyed by Bloomberg. Crude imports surged to the
highest level since April as refineries reduced operating rates.
WTI
for September delivery, which expires Thursday, dropped US$2.05, or
4.8 per cent, to US$40.57 a barrel at 1:37 p.m. on the New York
Mercantile Exchange. Prices touched US$40.46, the lowest since March
2009. The more-active October contract slipped US$2.10 to US$41.02.
Oil’s drop today
Brent
for October settlement fell US$1.89, or 3.9 per cent, to $US46.92 a
barrel on the London-based ICE Futures Europe exchange. It touched
US$46.81, the lowest since January. The European benchmark crude
traded at a US$5.90 premium to October WTI.
Oil
could fall to lows last seen during the financial crisis of 2008 amid
a persistent supply surplus, Citigroup Inc. said Wednesday.
“Balances
point to further oversupply throughout 2015 begging the question how
low can oil go,” Citigroup analysts led by Seth Kleinman said in an
e-mailed report. The price of $32.40 a barrel for U.S. crude futures
reached in 2008 “is a conceivable reality.”
Australia’s housing market is looking a lot like the US, Ireland and Spain before the global financial crisis. Why aren’t politicians more concerned?
The
flood of capital gushing out of emerging markets has risen towards
$US1 trillion over the past 13 months, roughly double the amount that
left during the financial crisis, amid slumping confidence in
developing economies.
The
sustained exodus reinforces concerns that emerging market economies,
suffering slowing growth and weakening currencies, are relinquishing
their longstanding role as engines for global growth to become a drag
on demand.
Analysts
say the flow may accelerate following China's currency devaluation
this month and nervousness over an expected US Federal Reserve rate
rise.
The
PBOC set the Yuan fix 0.08% stronger - the biggest 'strengthening in
2 months, which
is interesting because following The
IMF's confirmation of a delay to Yuan inclusion in the SDR basket to
Oct 2016 (pending a year-end decision and asking for more
flexibility), Offshore
Yuan forwards notably devalued (shifting
350pips higher to 6.65, the highest/weakest Yuan in a week) pricing
a 20 handle (or 3%) devaluation by August 2016.
Overnight saw another CNY110bn
liquidity injection rescue
from The PPT in the afternoon session (saving SHCOMP from a close
below the 200DMA) and tonight we see promise to recap Ag Bank along
with another CNY 120bn reverse repo injection.Shanghai
margin debt declined for a 2nd day in a row and Chinese stocks look
set to open weaker.
Offshore
Yuan forwards point to further devaluation to come...
Copper Breaches $5000, Breaks Below 15-Year Trendline
While
the PBOC was literally everything in its power to keep the Shanghai
Composite above its 200-day moving average as some sign of
'stability', it forgot about that other proxy of overall Chinese
economic health: copper. And
just as we warned previously, ever
since the CCFD crackdown in 2012, copper has been tumbling and more
crucially has just broken a 15-year trendline.
Climate
philanthropist George Soros invests millions in coal
Billionaire has previously funded renewable energy and low-carbon initiatives and has called coal a ‘lethal bullet’ for climate change
Billionaire has previously funded renewable energy and low-carbon initiatives and has called coal a ‘lethal bullet’ for climate change
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