OPEC, in its monthly bulletin, said that the low oil prices, brought about by higher crude production and market speculation, may translate into a “loss of much-needed revenue required from member countries’ socio-economic development” as well as a decline in investment in future capacity additions.
And “failure to invest now could mean prices in the coming years spiking to levels inconsistent with what is considered ‘reasonable’ for both producers and consumers,” it said.
Still, Tariq Zahir, a managing member at Tyche Capital Advisors, said he wouldn’t read too much into the OPEC news.
Saudi Arabia, OPEC’s largest producer, will continue to defend its market share, “producing at record levels, especially with Iranian oil coming online” following an agreement with the West over Iran’s nuclear program.
The Saudis have “made it clear they will not cut [output] unless other OPEC members cut,” said Zahir.
powerofsiberia • Aug 28, 2015 4:32 PM Flag
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Looks pretty bleak..
When I could buy the entire company singlehandedly.
I drive my cargo van a lot, 8 miles to the gallon in the city, these prices are great for my gas guzzling van, will fill up again tomorrow
The two major banks in Greece had the senior bond upgraded, the Greek government holds the most in NBG and Eurobank, they would lose a lot of money in the pension fund if they went into bad bank or even bail ins,,, Fitch upgraded the state-guaranteed long-term senior debt ratings of National Bank of Greece (NBG)and Eurobank Ergasias (EGFEY) to CCC from CC.
its down a dollar a gallon to 2.29 a gallon here, demand in oil will be high, oil should go to 58 a barrel, we need your help keep pushing oil up higher, it deserves to be higher, i am on the sidelines watching
I was happy i sold YNDX Friday, the last 2 day pumps were a great time to get out, and selling will be heavy tonight in Russia, even oil is going down, no Russian stock is safe.
Sentiment: Strong Sell
to try and cheer up oil, oil feels down tonight
Your correct on Tourism picking up, just out in the Greek Newspaper, The president of the Association of Greek Tourism Enterprises (SETE), Andreas Andreadis, believes that the tourism sector will survive the test of early elections as long as they result in a strong government.
The elections are taking place during a critical period for tourism, as revenues of approximately 3.2 billion euros are expected from around 5.5 million foreign tourists between September and October.
In September alone, more than 3.5 million foreign tourists are expected to visit Greece, bringing in 2.2 billion euros. For November and December, another one million tourists are expected.
If elections run smoothly, the Greek tourism industry will achieve its record 2015 goal of 25 million tourists and generate 14 billion euros for the economy. This is despite the disruption of January’s elections, the referendum and delays in reaching an agreement with the country’s creditors, which led to capital controls and Septembers snap elections.
Selling off assets that make you money, like gas stations and especially pipelines to pay off debt with low oil prices to stay for years doesn't draw investors attentions, and the Real could continue its drop just like the Canadian Loonie, but the Loonie 35% drop isnt as bad as the Real and its killing off the tar sand business in Canada as oil in Canada trades at 29 dollars a barrel
What i wonder is what the analysts forecasts will be for 3rd and 4th quarter will be, it has to be down because 3rd and 4th quarters are always less for western nations. China picks up in the 3rd and 4th quarter due to all the junk they make that people buy for Christmas. With Greece exports were higher and imports were lower according to the break down. If they keep the 420 euro with draw a week from the banks, they should continue with less imports and maybe things can turn around some, good luck
Bloomberg By Marcus Bensasson
August 28, 2015 5:58 AM
Greece’s economy grew more than initially estimated in the second quarter as consumption surged during Prime Minister Alexis Tsipras’s battle with the euro area over financial aid.
Gross domestic product rose 0.9 percent, compared with an initial estimate on Aug. 13 of 0.8 percent, the Hellenic Statistical Authority in Athens said Friday. That’s up from 0.1 percent in the first quarter and meant output was 1.6 percent higher than a year earlier, the fastest pace of annual growth since 2008.
Rio de Janeiro (AFP) - Brazil has slipped into recession, the government said Friday, deepening the gloom in the world's seventh largest economy already battered by falling commodity prices, political crisis and a corruption scandal.
In the second quarter of this year, gross domestic product fell 1.9 percent, according to official figures.
GDP had already been down 0.7 percent in the first quarter, the government statistics agency IBGE said, revising that figure down further from the earlier estimate of minus 0.2 percent.
Year-on-year, the second quarter growth was down 2.6 percent.
Brazil is now in its biggest contraction for six years and with the 2015 slump forecast to extend in milder form through 2016, economists believe the country is headed for the longest recession since 1931.
Brazil's economy has been tailing off for four years, ever since the end of a boom fueled by commodity exports, principally to China. Falling prices for oil and other commodities have punched huge holes in the budget.
Adding to the economic malaise is a growing political crisis in which President Dilma Rousseff faces calls for her impeachment and discontent -- even among many of her own supporters -- over attempts
The influential group of eurozone finance ministers this month said Greece had to explore "the possibility of a bad bank" given the scale of its NPL problem.
The leftist Syriza party included a plan for a bad bank when it was elected in January but did not get the necessary funding when it negotiated a third bailout with creditors.
If Athens does opt for a bad bank, it will need to show it would be an independent body able to clear up the mess and be free of bureaucracy and cronyism, restructuring advisers said.
They said with elections expected on Sept. 20, a review of banks' assets due by mid-October and a recapitalisation of banks targeted by the end of the year, the timeframe is tight and external advisors are being pulled in to consider options.
Greece has pledged to tackle its NPL problem with or without a bad bank, and change insolvency laws, improve judicial staff and insolvency administration and open the market for servicing and disposing loans.
The aim is to lure the U.S. private equity, hedge fund and other specialists who are the biggest buyers of distressed assets in Europe.
At NAMA, which six years ago paid 32 billion euros to buy loans with a face value of 74 billion euros from Ireland's stricken banks, about 90 percent of assets sold so far have gone to U.S. investors.
And decision-makers in Athens and Frankfurt will have taken note: NAMA says it expects to make up to 1 billion euros in profit when it completes the rundown of its assets by the end of the decade.
This came out after you posted and looks promising,,,,,, ZURICH (Reuters) - A form of debt restructuring rather than outright forgiveness should enable Greece to handle its "unviable" debt burden, the head of the International Monetary Fund was quoted as telling a Swiss newspaper.
The IMF has yet to make clear if it will participate in the third 86-billion-euro ($96 billion) international bailout that Greece signed up to in early August, having argued in favor of a partial writedown of a debt burden it considers unsustainable in its current form.
Greece's euro zone creditors, notably Germany, have ruled out a writedown but are willing to consider other forms of restructuring such as a lengthening maturities.
Asked about those differences, IMF Managing Director Christine Lagarde told Saturday's edition of Le Temps: "The debate on cancelling the debt has never been open I don't think it is necessary to open it if things go well...
"We are talking about extending maturities, reducing rates, (making) exemptions for a certain period of time. We are not speaking about cancelling debt."