Wednesday, April 1, 2020

1 Απρίλη 2020

Η κίνηση Σαουδικής Αραβίας + Ρωσίας εναντίον του αμερικανικού shale oil αρχίσει να αποδίδει καρπούς, με τις πρώτες χρεωκοπίες να καταγράφονται ήδη στην Αμερική. Μην ανησυχείτε βέβαια, διότι η Αμερική χρειάζεται το (εγχώριο) shale oil, διότι μετά τον υπερπληθωρισμό του δολαρίου, δε θα είναι και τόσο φτηνό όσο τώρα για τις ΗΠΑ να εισάγουν ενέργεια. Άρα...η FED θα τυπώσει κι άλλα δολάρια, ώστε να καλύψει τις απώλειες των εταιριών που βγάζουν shale oil.

Russia’s Plan To Bankrupt U.S. Shale Could Send Oil To $60
As soon as U.S. shale leaves the market, prices will rebound and could reach $60 a barrel, Rosneft’s Igor Sechin said recently. As fate would have it, in what many would have until recently considered an impossible scenario, a lot of U.S. shale might do just that.
Breakeven prices for U.S. shale basins range between $39 and $48 a barrel, according to data compiled by Reuters. Meanwhile, West Texas Intermediate (WIT) is trading below $25 a barrel and has been for over a week now.
"Apocalyptic April": Trump Fails To End Oil Price War As Saudis Unleash Oil Tsunami On The World
Having crashed by a record 66% in the first three months of the year, as the coronavirus destroyed demand and the world’s biggest producers embarked on a catastrophic supply free-for-all, oil prices extended losses on Wednesday even after Trump said he discussed the collapse with his Russian and Saudi counterparts, adding that Moscow and the kingdom would "get together" to seek a solution.
However, as Goldman noted last night, any agreement to cut output is likely too late and would fall short of the loss in consumption, not that one is imminent mind you because after Trump's comments last night, on Wednesday Russia said it is not in talks with Saudi Arabia on oil market situation and President Vladimir Putin has no immediate plans to speak with Saudi Arabian leadership, though Moscow remains open for talks, Kremlin spokesman Dmitry Peskov tells reporters on conference call.
So there is some hope, but for now with Trump failing to defuse the oil price war, Saudi Arabia has flooded the market as it warned it would less than a month ago, with Saudi Aramco’s oil supply surpassed 12 million bpd on the first day of April, up from 9.7mmb/d in March, and is boosting its production to its maximum, Bloomberg and the WSJ reported. As a reminder, in early March, Saudi Arabia instructed its state-owned oil company to boost supply to 12.3m b/d in April, and told Aramco to boost maximum production capacity to 13m b/d as soon as possible, something it has taken quite seriously as a tweet it just sent would indicate.

'Texas Miracle' "On Ice For Time Being" As Crude-Carnage & COVID-Chaos Double-Whammy Strikes Lone-Star State
Plains All-American, a pipeline company, was offering WTI per barrel for $17.50 on Friday, a drastic discount from $63 in January. Drillers need about $49 per barrel to stay profitable, a prolonged downturn under $40 for several years could bankrupt 40% of all US shale.  
Texas has been diversifying into other industries such as healthcare, transport, and technology, to make its economy more resilient if oil prices fall. Every $1 decline in WTI price equates to an $85 million loss in tax revenue per year, Craymer's group estimates.
For the current budget cycle, Texas was expecting oil and gas taxes would generate $5.5 billion, of which $1.6 billion would be transferred to an emergency fund. However, the budget cycle was based on $58 oil prices.
The state is expected to start drawing from its emergency fund as oil and gas taxes plus sales taxes will be significantly lower as the pandemic has likely triggered a depression in the US economy for the second quarter. 
To make matters worse, 155,000 Texans filed for unemployment benefits last week, the most significant increase in a given week in more than three decades.

Whiting Petroleum Files For Prepackaged Bankruptcy
Talk about a coincidence: just as we were discussing why April would be "apocalyptic" for the oil industry, as Saudi Arabia just unleashed an unprecedented record amount of oil to buyers in a scramble to put its high-priced competitors out of business, warning that "countless oil producers would file for bankruptcy", former shale darling Whiting Petroleum did just that, filing a pre-packaged Chapter 11 deal in the Southern District of Texas Bankruptcy Court after reaching an agreement with certain note holders to pursue a "comprehensive" and "consensual" financial restructuring.
It's Happening: Oil Producers Are Now Paying Clients As Wyoming Sour Price Turns Negative
Bloomberg points out that in a rather obscure corner of the American physical oil market, crude prices have now officially turned negative as "producers are actually paying consumers to take away the black stuff."

The first crude stream to price below zero was Wyoming Asphalt Sour, a dense oil used mostly to produce paving bitumen. Energy trading giant Mercuria bid negative 19 cents per barrel in mid-March for the crude, effectively asking producers to pay for the luxury of getting rid of their output.

Σε άλλες ειδήσεις:

New York MTA Chief Wants Federal Aid to Make Bond Payments (ο αντίστοιχος ΟΑΣΑ για τα ΜΜΜ της Νέας Υόρκης ουσιαστικά λέει ότι έχουν χρεωκοπήσει, και ζητάει κι αυτός -τι άλλο- δολάρια) 
Universities Panic As Dorms Sit Empty: Recruiting, Tuition, & Faculty Contracts In Limbo (τα πανεπιστήμια στις ΗΠΑ, που λειτουργούν με δίδακτρα, έχουν και αυτά πρόβλημα, και ζητάνε και αυτά -τι άλλο- δολάρια)

Airbnb Bails Out Highly Leveraged Superhosts As Travel Industry Crashes
Άρον-άρον οι ιδιοκτήτες εγκαταλείπουν το Airbnb

World's biggest wealth fund dragged closer to forced asset sales

Covid-19: Η Ισπανία αναστέλλει τις εξώσεις

'On our own now': U.S. strategic stockpile empty of medical supplies
General Electric Workers Launch Protest, Demand to Make Ventilators

"Stop Buying Masks"..? Oh Wait! CDC Considers Asking Public To Wear Face Masks

Europe & Iran Complete First INSTEX Transaction, Dodging US Sanctions

Τρία νέα κρούσματα στρατιωτικών στην Ξάνθη αλλά το Υπουργείο Άμυνας Φυλακίζει τους Φαντάρους! 

Χανιά: Καταστράφηκαν οι παραγωγοί ντομάτας – Πετούν 50.000 κιλά ντομάτας ημερησίως σε χωματερές

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