Salient to Investors: Fareed Zakaria writes: Hong Kong is far richer than the rest of China and a window into the country’s future. The rise in US oil and gas production along with the slowing Chinese growth and appetite – a 0% increase in oil demand in 2014 versus 7% annual
READ MORE... →Salient to Investors: David Stockman writes: Emerge Energy Services’s parabolic rise from its IPO and absurd valuation demonstrates the momo play by robots, day traders and flavor-of-the-month hedge funds in a stock market that has been destroyed by the Fed. Emerge is a poster boy for the irrational exuberance that has become institutionalized
READ MORE... →Salient to Investors: Fareed Zakaria said: Movie studios and theaters have made a mistake in not affirming freedom of expression regarding the movie “The Interview”. In the late 1930s, the UK wanted to ban distribution of Charlie Chaplin’s “The Great Dictator” to appease Nazi Germany. Obama’s strategy of pressuring Russia and making
READ MORE... →Salient to Investors: Miswin Mahesh and Michael Cohen at Barclays said: OPEC will not cut supplies sufficiently to overcome a lackluster demand picture half1 2015 – Brent will average $93 and WTI will average $85 in 2015. Oil has reached its lowest point for 2014 but will recover modestly during Q4
READ MORE... →Salient to Investors: The price gap between regular and premium gasoline is at the widest since 2008, caused partly by the supply of shale oil, which is more easily turned into low-octane gasoline. John Auers at Turner Mason said foreign oils produce high-octane fuel better. Patrick DeHaan at GasBuddy Organization said
READ MORE... →Salient to Investors: Bob Brackett at Sanford C. Bernstein said oil at $79.78 a barrel renders one-third of US shale oil production uneconomic. Bernstein said the price will rise to a level where more output is economic. Vikas Dwivedi at Macquarie said any slower increase in US output would reshape the way
READ MORE... →Salient to Investors: Hedge funds cut bullish wagers on oil by the most in six weeks, while short positions rose to the highest level. John Kilduff at Again Capital said oil prices reflect speculation that further declines are more likely. IEA said US crude production will climb to the most since
READ MORE... →Salient to Investors: Fareed Zakaria said: Obama’s Syria policy is destined for failure and almost certain to produce chaos and unintended consequences. Joshua Landis at Syria Comment estimates that non-jihadi groups collectively control only about 5% of Syria. The underlying reason for the violence in Iraq and Syria is a Sunni
READ MORE... →Salient to Investors: Harry Tchilinguirian at BNP Paribas estimates that Brent will be supported at $80 to $85 a barrel and could rebound to $95 by year-end because it is not in OPEC’s interest to see prices too low for too long. Analysts are split on whether OPEC will cut
READ MORE... →Salient to Investors: Ed Morse at Citigroup said the lowest oil price in 4 years will provide as much as $1.1 trillion of stimulus to global economies by lowering the cost of fuels and other commodities, which are energy intensive to one degree or another. Combined production from the US
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