– OPEC reported higher production.
– They restated past production numbers higher as well.
– We expect production to race higher into the OPEC meeting.
– When matching that with seasonality, that is not a good thing for oil.
OPEC supply numbers were worse than expected. They also updated older numbers higher. The US supply numbers were also higher. We don’t see how OPEC can come to terms on supply. We think the global economy could be slowing too fast for countries to stick to a deal. We still see downside for oil.
First, Let’s Look at OPEC Production
Here are the new numbers they gave on production (pg. 61 of PDF). July was higher than May and June.
Negative interest rates are an existential threat for insurance companies, pension funds and other financial entities that need positive investment returns to survive.
As rates on government bonds have gone negative in Europe and Japan, the above companies have been big buyers of US Treasury bonds, which still (for some reason) continue to offer positive yields.
But according to a Bloomberg analysis published today, Treasuries’ positive yield has recently evaporated when the cost of hedging currency fluctuations is included. Here’s an excerpt:
….related:
‘Soon’ And ‘Really, Really Crazy’: Starting Up The Helicopters
Gold investment demand surged to a record in the first half of 2016 and overtook the previous high seen during the 2009 financial crisis on a “perfect storm” for gold according to the ‘Gold Demand Trends Q2 2016’ report which was released by the World Gold Council today.
….related:
Goldman Sachs analyst Eugene King estimates we have only “20 years of known mineable reserves of gold.” The last known gold deposit
The U.S. and world are heading toward an accelerated breakdown of their economic and financial markets. Unfortunately, the overwhelming majority of analysts fail to understand the root cause of this impending calamity. This is also true for the majority of precious metals analysts.
The reason for this upcoming systemic collapse of the U.S. and Global markets is quite simple when you understand the information and are able to CONNECT THE DOTS. While it has taken me years of research to be able to finally put it all together, new information really put it all into perspective.
The chart below is from yesterday’s close and it show’s the VIX (Volatility Index) back to early 2014.
If you look at the chart, the VIX has a long term support line that it is finally testing.
Remember … that a higher VIX equals a lower market since they are inverse to each other. Therein comes the risk for you, so please keep an eye on the VIX.
….check the fear and greed index chart in: Wake Up and Smell the Bull Trap! (scroll down)
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