Drawdown in Inventory and Rebalancing to Boost Prices in Second Half.
by Prinesha Naidoo
Mine Web
Unexpected disruptions in production have seen crude oil prices hit six-month highs. While this is expected to set a new floor for oil prices, substantial price increases are only expected as supply tightens in the second half of the year.
A combination of vandalism and sabotage by separatist group Niger Delta Avengers has pushed Nigeria’s oil output down to a 20-year low of 1.4 million barrels per day (bpd) while more than one million bpd of Canadian crude production has been shut down due to raging wildfires in Alberta. Political and financial instability in Venezuela – which has triggered fears of a default by state oil company Petróleos de Venezuela – have also lead to concerns that the country’s oil production, already down by some 188 000 bpd, may fall even further.
Silver Price Forecast:
Many believe, from what I’ve gathered, that libertarianism lacks compassion and promotes a “survival of the fittest” ideology.
U.S. housing starts rose 6.6% in April — they were expected to come in at 4.6% — to a seasonally adjusted annual rate of 1.172 million units, the Commerce Department said Tuesday May 17.
Buy gold and silver coins and bars for delivery and storage has advocated a leading Irish financial adviser. Eddie Hobbs has given advice to his clients and says that they should buy silver and gold bullion in order to protect from the coming global financial crisis.
Dear Friend of GATA and Gold:
Looking at the critical figures and data in the energy markets this week, we see oil prices nearing $50 dollars as supply outages continue and U.S. production declines.
There is a great deal that is wrong with mainstream economic commentary, starting with its unwavering devotion to orthodox economics and unshakable faith in their “stimulus.” No matter how little is actually stimulated there is never any doubt that the media will simultaneously forget the last one while lavishing praise on the next one. It is, however, the actual economic commentary itself that may be the most damaging. Because nothing works, every news story is printed from the shallowest, narrowest perspective. It is a grave disservice to the public and journalism.
Primitive man made binary decisions. Hungry? Eat. Fearful? Run. Tired? Rest. Modern traders exhibit the same binary decision making. Buy or sell. Fear or greed. Win or lose.
With markets awaiting today’s release of the FOMC minutes, here is what the big money is watching.
Incoming data continues to support the narrative that the US economy is not, I repeat, not, slipping into recession. Instead, the US economy is most likely continuing to chug along around 2 percent year over year. Not exciting, but not a disaster by any means. Indeed, for Fed officials thinking the rate of potential growth is hovering around 1.75 percent, it is enough to keep upward pressure on labor markets, pushing to economy further toward full employment.
We have posted these weekly discussions for over two years now…all because of our firm belief that we are living through the most dangerous period of Cold War since The Cuban Missile Crisis of 1962. Recent events conform this analysis and John and Steve are here to explain why.
Good Day. And a Wonderful Wednesday to you! The rain has stopped for now. Yesterday, when I left the office, the rain was blowing sideways, and it was cold. The walk across the bridge made me think it was November. And certainly not May! An awful night sports-wise for our town, as both the Blues and Cardinals lost! UGH! They win together, and lose together is sure seems. Scorpion greets me this morning with their arena rock ballad: Still Loving You. A very good song I must say! And the fave song of a certain friend of mine. Right, Laura Lou?
If you thought economics was boring, think again. At the heart of wars, land grabs, politics, history, and almost any sort of human interaction lies economics. Remember – economics is about money, and money, depending upon your perspective, either makes the world go ‘round or is the root of all evil. Either way, Jason Hartman’s interview of master economist, Martin Armstrong, for episode #382 of The Creating Wealth Show makes for scintillating listening. First, some background.
Recently I was having drinks with a friend of mine who is an ultra-successful US real estate developer and investor.
Macroeconomic analyst Rob Kirby says his rich clients around the planet are bracing for an inevitable economic calamity. Kirby explains, “The people I know, that I would say are at the higher level of the food chain in the global world of finance, are hunkered down and making very serious preparations. What I see on a macro level is people acting like squirrels preparing for winter. They are burying nuts and gathering as much physical precious metals as they can. They are making preparations for a post-dollar world in terms of world reserve currency.”
The global monetary elites had a conference in Zurich, Switzerland, last week. Among the speakers were William Dudley, president of the Federal Reserve Bank of New York, and Claudio Borio, chief economist of the Bank for International Settlements.