I am less and less concerned about the eurozone periphery over the medium term because recovery in Europe looks poised to last. On the other hand, the slowdown in China could have wide-ranging consequences, particularly for countries dependent on commodities for growth. The currencies of commodity producers are declining, making interest rate policy trickier as their economies slow.
Tag: peak oil
In yesterday’s commentary, I wrote that China was attempting to rebalance its economy, which ultimately means a slowdown in its use of commodities. This has hit the commodities currencies particularly hard, with the Australian Dollar down over 16%. Commodity producers are going to be the biggest losers from a Chinese rebalancing. And the question then is what happens to their economies. Let’s look at Australia
We’ve had a number of questions on energy sources in the United States – particularly with respect to the generation of electricity. Here are a few interesting facts about recent trends that hopefully help clarify some of the confusion surrounding this topic.
The top two stories in today’s links are on shale oil and the fiscal cliff. I will concentrate on the shale oil issue and say a few parting words about the fiscal cliff. We have three articles on shale oil here and I think the lead article from Bloomberg is a recitation of the optimists’ or the bulls’ case on […]
Jeremy Grantham’s quarterly piece is out now and the important topic is the lack of growth in the US. The way that Grantham paints the picture – and I believe this is an accurate depiction – the US is not just suffering from a cyclical growth slowdown but faces a secular growth slowdown of monumental proportions, especially in view of […]
By Frederick J. Sheehan Editor’s Note: Edward Harrison will be writing about the logic others feel support he other side of this trade based on views that Deniis Gartman espoused at an investment conference earlier today. Frederick J. Sheehan is the author of Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession (McGraw-Hill, 2009) […]
Editor’s note: the price plateaus mentioned in this article are all in nominal terms. When using inflation-adjusted prices, prices have still risen dramatically, though less dramatically. By Marin Katusa, Chief Energy Investment Strategist Between October 1973 and March 1974, the price of oil shot sky-high. OPEC embargoed its output, and prices spiked from $3 a barrel to $12 – a […]
Editor’s note: As controversial as the subject of peak oil is, the comments about global warming and other environmental problems are equally controversial. This site does not subscribe to the view that global warming concern is overblown or that technology ‘”will save us” from man’s overuse of finite natural resources without serious ill effects on many populations due to cost […]
In addition to the hole left by the Iran sanctions, the Saudis are pressured to pump more in order to meet their own rising domestic demand. This is putting strains on OPEC’s spare capacity.
There is some evidence that recently discovered shale oil fields cannot be successfully exploited at prices under $100 a barrel.
I ran across three separate articles on peak oil at well-regarded financial news sites today: The Economist, The Financial Times and Le Figaro. I thought I’d give you a run down of what they were saying and what it means for the economy and investing.
I think this should be obvious to everyone by now, but peak oil is a clear factor in the Argentina/Spain oil crisis. Here’s what happened.