Thursday, August 01, 2019
Today’s Market News
- Trade Talks: The US and China wrapped up trade talks in Shanghai on Wednesday without a trade agreement in place and without any true progress in some analysts’ opinion. China’s Commerce Ministry said, “both sides… had a candid, highly effective, constructive and deep exchange on major trade and economic issues of mutual interest.” The next meeting between the two sides is scheduled for September in Washington.
- US Oil Output: In a report released by the U.S. Energy Information Administration (EIA) U.S. crude output declined 26,000 barrels per day in May to 12.11 million barrels per day. The EIA also revised its estimate for April down by 28,000 barrels per day to a monthly record of 12.13 million barrels per day. Both Texas and New Mexico set oil output records in the month of May with Texas producing 4.97 million barrels per day and New Mexico producing 900,000 barrels per day.
- OPEC: OPEC oil output hit an eight year low in July as voluntary cuts by Saudi Arabia, US sanctions on Iran, and other outages among OPEC members hindered output. OPEC in the month of July pumped 29.42 million barrels per day which is down 280,000 barrels per day from June and the lowest since 2011. Even with the agreement to continue output cuts through the end of 2019 Brent crude has fallen from $75 in April to $65 this week as traders continue to point to a weakening global economy.
- Market Opinion: The market is starting the day sharply lower as the U.S. Federal Reserve weakened expectations that this could be the start of more rate cuts to come. Also weighing on the market this morning is the fact that no real progress towards a trade agreement came out of the meeting yesterday between the U.S. and China.