Equities higher, oil rebounds as greenback eases... Could an oil shortage be on the way?...
Equities higher, oil rebounds as greenback eases
An easing of the US dollar has helped oil prices to rebound from recent declines although the market remains mixed ahead of a potential output freeze next month.
Metals are under pressure though, gold in particular, ahead of the Fed’s September meeting which could result in an interest rate rise.
Equities are generally higher with most Asian markets closing with gains. Japan’s Nikkei was marginally lower though as household spending and retail sales data slipped, although by less than was expected.
Europe’s indexes are also higher despite tough times for miners. Germany’s consumer price index is the only data release of interest in the region.
Wall Street and Toronto are expected to open higher following a positive end to the previous session.
Could an oil shortage be on the way?
Oversupply is still very much the focus for oil markets and even an output freeze is not likely to see that change in the near-to-medium term but there could be other issues for the industry ahead.
A new report from UK firm Wood Mackenzie says that just 2.7 barrels of new supply was discovered in 2015 as energy firms cut exploration budgets. That’s the lowest level since 1947.
There is expected to be an uptick in demand for oil which may be harder to meet due to the lack of investment caused by weak prices, especially in the US shale market.
Experts are now considering a shortfall in supply hiking prices in around 10 years.
An easing of the US dollar has helped oil prices to rebound from recent declines although the market remains mixed ahead of a potential output freeze next month.
Metals are under pressure though, gold in particular, ahead of the Fed’s September meeting which could result in an interest rate rise.
Equities are generally higher with most Asian markets closing with gains. Japan’s Nikkei was marginally lower though as household spending and retail sales data slipped, although by less than was expected.
Europe’s indexes are also higher despite tough times for miners. Germany’s consumer price index is the only data release of interest in the region.
Wall Street and Toronto are expected to open higher following a positive end to the previous session.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 18,502.99 (+0.58 per cent) | +0.38 per cent | +11.18 per cent |
| TSX Composite | 14,681.97 (+0.29 per cent) | +0.68 per cent | +5.89 per cent |
| Europe (at 4.30am ET) |
|||
| UK FTSE | 6,837.81 (+0.00 per cent) | +1.69 per cent | +9.44 per cent |
| German DAX | 10,632.10 (+0.83 per cent) | +2.85 per cent | +3.24 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,311.99 (+0.13 per cent) | +3.37 per cent | -0.91 per cent |
| Japan Nikkei | 16,725.36 (-0.07 per cent) | +0.94 per cent | -12.60 per cent |
| Other Data (at 2.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 49.63 (-0.75 per cent) |
47.40 (+0.89 per cent) |
1324.50 (-0.24 per cent) |
U$0.7667 |
| Aus. Dollar |
|||
| U$0.7550 | |||
Could an oil shortage be on the way?
Oversupply is still very much the focus for oil markets and even an output freeze is not likely to see that change in the near-to-medium term but there could be other issues for the industry ahead.
A new report from UK firm Wood Mackenzie says that just 2.7 barrels of new supply was discovered in 2015 as energy firms cut exploration budgets. That’s the lowest level since 1947.
There is expected to be an uptick in demand for oil which may be harder to meet due to the lack of investment caused by weak prices, especially in the US shale market.
Experts are now considering a shortfall in supply hiking prices in around 10 years.
