Dow climbed 54, advancers slightly ahead of decliners & NAZ rose 34. The MLP index slipped a fraction in the 537s & the REIT index fell 4+ to the 307s. Junk bond funds were mixed to lower & Treasuries retreated. Oil fell to
a 16-month low after US crude stockpiles fell less than projected in a gov report & gold edged higher.
AMJ (Alerian MLP Index tracking fund)
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif?0.014709774811628273)
The US & EU are poised to halt billions of dollars in oil exploration in Russia by the world’s largest energy companies in sanctions that would cut deeper than previously disclosed. The new sanctions over Ukraine would prohibit US & European cooperation in searching Russia’s Arctic, deep seas or shale formations for crude. If implemented, they would affect companies from Dallas to London, including Exxon Mobil (a Dow stock & Dividend Aristocrat) & BP (BP). EU ambassadors met today & will resume deliberations tomorrow on whether to trigger added sanctions or wait longer to see if a cease-fire holds between Ukraine & pro-Russian separatists & if Russia backs moves toward a longer-term agreement. Once the EU implemented the new ban on sharing energy technology & services, the US would follow suit with a similar package, including barring the export of US gear & expertise for the specialized exploration that the Russians are unequipped to pursue on their own. EU govs agreed on these oil-related sanctions on Mon as part of a wider package of measures intended to hobble Russia’s finance, defense & energy industries, pending evaluation of the cease-fire declared in Ukraine last week. The added sanctions wouldn’t interfere with drilling & production from conventional land-based wells & those along the shallow edges of inland seas, some of which have been pumping crude for decades. The sanctions target reserves that wouldn’t begin providing crude to global energy markets for 5-10 years. The move would go beyond previously reported proposals to widen curbs on technologies for the oil industry by banning such cooperation, levying a heavy toll on Russia’s $425B a year petroleum industry. No companies outside the US & Europe have the specialized techniques for extracting crude from deep-sea fields & shale formations. While the US doesn’t intend to allow exemptions for existing contracts that would be affected, it's unclear whether the EU would provide more leeway. XOM fell 58¢. If you would like to learn more about XOM, click on this link:
club.ino.com/trend/analysis/stock/XOM?a_aid=CD3289&a_bid=6ae5b6f7
Putin Oil Deals With Exxon, Shell Imperiled by Sanctions
Federal Reserve (FED) officials are considering whether to alter their guidance on the likely path of interest rates to give them more flexibility to react to changes in the economy. The FED has said since Mar that its benchmark rate would stay low for a “considerable time” after it completes monthly bond buying intended to boost growth. With purchases set to end late this year & the FED nearing its full-employment goal, that assurance will soon become obsolete. The need for new guidance unites policy makers who want to keep rates low for longer with those who prefer to raise them sooner. They want to move away from promising to keep rates low for some unspecified period of time toward tying the first increase to changes in inflation & the job market. One stumbling block: how to change the language without sparking an unwanted jump in bond yields that could threaten to stifle the expansion. Tightening isn’t imminent. In Jun, The FED forecast that the benchmark federal funds rate would rise some time next year. They will issue new forecasts for the rate, along with economic growth, unemployment and inflation, at the conclusion of the Sep 16-17. Policy makers say they want to move away from any from of guidance based on time periods & dates, & instead stress that the outlook for the federal funds rate depends on progress toward the FED twin goals of full employment & low-stable inflation.
Fed Weighs Change to Rate Guidance for Added Flexibility
Saudi Arabia, the world’s biggest crude exporter presently, told OPEC that it cut production 408K barrels a day (bpd) in Aug, amid signs of a supply surplus that’s pushed prices to a 16-month low. The kingdom produced 9.6M bpd, compared with 10M in Jul, it told OPEC, the biggest monthly decline since Dec 2012. Other estimates collated by OPEC, based on what it calls secondary sources, show the nation cut output 55K bpd to 9.86M. Brent crude, a benchmark for more than half the world’s oil, fell below $100 this week as supplies from Libya rebounded, & amid speculation of an oversupply. It has been projected that the price decline would increase the chances of Saudi Arabia curbing supplies. OPEC reduced the outlook for demand for its crude next year by about 200K barrels a day, citing expanding supplies from nations outside the group & a weaker outlook for demand. China’s manufacturing slowed more than estimated in Aug, adding to weaker-than-anticipated credit, production & investment figures that suggested the economy was losing momentum, indicating it will need less oil.
Saudi Arabia Told OPEC It Cut Oil Output 408k b/d in Aug.
Buyers returned but not with conviction. Sanctions against Russia are being felt by countries & companies. The outlook for fighting in Ukraine remains fuzzy & Obama gives a speech tonight about fighting the bad guys in the Mideast. What has been leaked is that it will have tougher language than in the past (his poll numbers keep sinking). As referred to above, the FED has to rethink how it wants to explain the future of interest rates after the monthly bond purchases end (shortly). Words count for a lot. I think those guys will err on the side of caution. Dow remains within spitting distance of its record highs, where it has been for 2 months.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLV14.NYM | ....Crude Oil Oct 14 | ....91.66 |  ...1.09 | (1.2%) |
The US & EU are poised to halt billions of dollars in oil exploration in Russia by the world’s largest energy companies in sanctions that would cut deeper than previously disclosed. The new sanctions over Ukraine would prohibit US & European cooperation in searching Russia’s Arctic, deep seas or shale formations for crude. If implemented, they would affect companies from Dallas to London, including Exxon Mobil (a Dow stock & Dividend Aristocrat) & BP (BP). EU ambassadors met today & will resume deliberations tomorrow on whether to trigger added sanctions or wait longer to see if a cease-fire holds between Ukraine & pro-Russian separatists & if Russia backs moves toward a longer-term agreement. Once the EU implemented the new ban on sharing energy technology & services, the US would follow suit with a similar package, including barring the export of US gear & expertise for the specialized exploration that the Russians are unequipped to pursue on their own. EU govs agreed on these oil-related sanctions on Mon as part of a wider package of measures intended to hobble Russia’s finance, defense & energy industries, pending evaluation of the cease-fire declared in Ukraine last week. The added sanctions wouldn’t interfere with drilling & production from conventional land-based wells & those along the shallow edges of inland seas, some of which have been pumping crude for decades. The sanctions target reserves that wouldn’t begin providing crude to global energy markets for 5-10 years. The move would go beyond previously reported proposals to widen curbs on technologies for the oil industry by banning such cooperation, levying a heavy toll on Russia’s $425B a year petroleum industry. No companies outside the US & Europe have the specialized techniques for extracting crude from deep-sea fields & shale formations. While the US doesn’t intend to allow exemptions for existing contracts that would be affected, it's unclear whether the EU would provide more leeway. XOM fell 58¢. If you would like to learn more about XOM, click on this link:
club.ino.com/trend/analysis/stock/XOM?a_aid=CD3289&a_bid=6ae5b6f7
Putin Oil Deals With Exxon, Shell Imperiled by Sanctions
Exxon Mobil (XOM)
Federal Reserve (FED) officials are considering whether to alter their guidance on the likely path of interest rates to give them more flexibility to react to changes in the economy. The FED has said since Mar that its benchmark rate would stay low for a “considerable time” after it completes monthly bond buying intended to boost growth. With purchases set to end late this year & the FED nearing its full-employment goal, that assurance will soon become obsolete. The need for new guidance unites policy makers who want to keep rates low for longer with those who prefer to raise them sooner. They want to move away from promising to keep rates low for some unspecified period of time toward tying the first increase to changes in inflation & the job market. One stumbling block: how to change the language without sparking an unwanted jump in bond yields that could threaten to stifle the expansion. Tightening isn’t imminent. In Jun, The FED forecast that the benchmark federal funds rate would rise some time next year. They will issue new forecasts for the rate, along with economic growth, unemployment and inflation, at the conclusion of the Sep 16-17. Policy makers say they want to move away from any from of guidance based on time periods & dates, & instead stress that the outlook for the federal funds rate depends on progress toward the FED twin goals of full employment & low-stable inflation.
Fed Weighs Change to Rate Guidance for Added Flexibility
Saudi Arabia, the world’s biggest crude exporter presently, told OPEC that it cut production 408K barrels a day (bpd) in Aug, amid signs of a supply surplus that’s pushed prices to a 16-month low. The kingdom produced 9.6M bpd, compared with 10M in Jul, it told OPEC, the biggest monthly decline since Dec 2012. Other estimates collated by OPEC, based on what it calls secondary sources, show the nation cut output 55K bpd to 9.86M. Brent crude, a benchmark for more than half the world’s oil, fell below $100 this week as supplies from Libya rebounded, & amid speculation of an oversupply. It has been projected that the price decline would increase the chances of Saudi Arabia curbing supplies. OPEC reduced the outlook for demand for its crude next year by about 200K barrels a day, citing expanding supplies from nations outside the group & a weaker outlook for demand. China’s manufacturing slowed more than estimated in Aug, adding to weaker-than-anticipated credit, production & investment figures that suggested the economy was losing momentum, indicating it will need less oil.
Saudi Arabia Told OPEC It Cut Oil Output 408k b/d in Aug.
Buyers returned but not with conviction. Sanctions against Russia are being felt by countries & companies. The outlook for fighting in Ukraine remains fuzzy & Obama gives a speech tonight about fighting the bad guys in the Mideast. What has been leaked is that it will have tougher language than in the past (his poll numbers keep sinking). As referred to above, the FED has to rethink how it wants to explain the future of interest rates after the monthly bond purchases end (shortly). Words count for a lot. I think those guys will err on the side of caution. Dow remains within spitting distance of its record highs, where it has been for 2 months.
Dow Jones Industrials
I’m a huge fan of INO & from what I have seen so far, their service Marketclub! This isn’t a stripped down version, everything in MarketClub is available to you. I don’t want to give everything away, but you’ll have unlimited access to my favorite3 tools: Trade Triangles, Smart Scan & Alerts! The best part is that the MarketClub customer support team will be providing UNLIMITED support! You can call or email for an instant response to any question, comment or concern.
Here’s that link:
https://club.ino.com/join/specialtrial/index_free.html?a_aid=CD3289&a_bid=359ef9a3
I’d recommend you jump on this now.
No comments:
Post a Comment