Wheat continues surge toward all-time high as Russian invasion of Ukraine shuts down exports
Wheat futures surged by their daily price limit again Monday, extending a relentless surge towards all-time...
Wheat futures surged by their daily price limit again Monday, extending a relentless surge towards all-time highs and fanning fears of a global commodity shock as Russia’s invasion of Ukraine shuts off a crucial source of exports and threatens future production of the key food grain.
Expect wheat(and thereby corn & rice) prices to continue to rise - aside from price increases, this will cause geopolitical instability in emerging markets (e.g. the last time there was a spike in wheat prices, the Arab Springhappened).
U.S. stocks start the week lower with oil increasingly volatile
Stocks opened lower as investors continued to monitor developments around Russia's...
Stocks opened lower as investors continued to monitor developments around Russia's invasion of Ukraine, tracking volatile action in crude-oil prices. The Dow Jones Industrial Average DJIA, fell 132 points, or 0.4%, to 33,483, while the S&P 500SPX, fell 0.2% to 4,321 and the Nasdaq CompositeCOMP rose 0.3% to 13,349. Stock-index futures had fallen sharply in early activity as oil futures spiked, taking the U.S. benchmark briefly above $130 a barrel. Oil futures have since pulled back, with WTI futures CL.1 up 0.7% at $116.55 a barrel, with losses for stocks moderating.
A wildly unpredictable macroeconomic outlook on the back of the Russia-Ukraine war,...
A wildly unpredictable macroeconomic outlook on the back of the Russia-Ukraine war, coupled with spiking gas, coal, and power prices have triggered a mass exodus of speculators from EU ETS trading, sending European carbon prices into a tailspin, with the Dec ’22 currently assessed at €67 per metric tonne, down almost €30/mt week-on-week.
Whiting Petroleum and Oasis Petroleum announced they have entered...
Whiting Petroleum and Oasis Petroleum announced they have entered into an agreement to combine in a merger of equals transaction. The combined company will have a premier Williston Basin position with top tier assets across approximately 972K net acres, the combined production of 167.8 thousand boepd, significant scale and enhanced free cash flow generation to return capital to shareholders. Upon closing, Whiting’s President and CEO, Lynn Peterson, will serve as Executive Chair of the Board of Directors of the combined company. Oasis’ CEO, Danny Brown, will serve as President and Chief Executive Officer and as a member of the Board. The combined company will be headquartered in Houston upon closing but will retain the Denver office for the foreseeable future. The combined company will operate under a new name and is expected to trade on the NASDAQ under a new ticker to be announced prior to closing.
Russia/oil embargo: west would have to cut consumption to cope
The US has proposed an import ban on Russia’s crude and refined oil products. Nearly...
The US has proposed an import ban on Russia’s crude and refined oil products. Nearly half of that country’s oil production of 11mn barrels a day are exports, about 5 percent of world output. How could the US-led coalition of sanctions allies cover the supply shortfall if the embargo goes ahead?
US shale drillers would need to pump more oil in the event of an embargo. Over the next two years, perhaps another 2mn barrels a day could come from this source.
All of the measures possible would still leave sanctions allies with a shortfall. That gap could only be covered in the short term by dialing back demand in response to soaring prices. Longer-term, the only route for the democratic world is to invest heavily in renewables, nuclear energy and liquefied natural gas. History shows it takes years to reduce demand for crude.
