Wednesday 18 November 2015

Top Tweets Today: 18/11/2015

As we get closer to the OPEC member meeting to be held from the 4 December this year, tensions are already high ahead of the meeting with some members not in agreement with the way the collusive body has handled the glut in oil output that has affected many members.

I've said numerous times on this blog that if Saudi Arabia continues to ignore the cries of concern from its fellow members then they could very well be faced with member cheating in the form of cutting production and not meeting production targets.

The cracks are starting to show with nations such as Venezuela, Nigeria and Algeria indicating the longer term problems each of their economies are dealing with as a result of unsustainable oil prices.
It's been a few weeks since mining house Glencore saw a wave of panic that resulted in a huge dip in their market capitalisation after a note was sent by Investec highlighting the continued weakness in resources stock and pointing out that if we were to fail to see a bounce anytime soon it could be doom and gloom for Glencore whose management who have set out an ambitious target of cutting back debt by 33% in less than a year.

Although the price shock did leave bargain hunters with the opportunity to scoop up some great deals  but it proved all too short for the company that has seen its stock price once again slumping but this time at a much more pacing rate making the move feel sustainable.

At the time it didn't feel as if commodities had tired out from their extensive selloff that's been in place for over a year now. Perhaps a little breather before more negative sentiment fed their way through to skittish investors.

What I do believe though is Glencore CEO Ivan Glasenberg has shown the market his willingness to inject confidence if need when judging from the aftermath of the shock drop. It's a step in the right direction for the company but I firmly believe we need to see more mining companies go bust before we start to see excess supply flooding the market at present being soaked up.
In yesterday's blog I detailed how the current global political stage is heating up following the Paris attacks over the weekend and what Russia stands to gain from its military involvement in Syia at present.

A statement made by the US president Barack Obama today show all the hallmarks of a stamp of approval for Russian president Vladimir Putin to go ahead and root out ISIS militants in Syria. He also said that Putin should concentrate on defeating terrorism instead of propping up Assad.

The moment is right for Putin to win over the support from the West once again, so these comments made by Obama won't divert Putin's attention from getting the job done.
Posted by at

No comments :

Post a Comment

Subscribe to: Post Comments ( Atom )