Top Tweets Today:27/11/2015

If there's one aspect about financial markets you learn in your dealings, everything is scrutinised to the point where often overreaction plays a role in either lifting or sinking a price. However Chinese authorities still seem to be grappling with this concept somewhat with the latest news out of China being a probe into broker's alleged misconduct which the regulator has claimed led to the dramatic fall of Chinese equities back in August of this year.

The transitioning process was never going to be as smooth as many thought and the problem lies in the fact that financial markets require a certain amount of autonomy to operate with freedom of movement and access to information.

However the government's interference has not only rescinded those requirements, it's opened participants up to criminal liability for something which should be a basic in any free market.

#China's #Stocks Sink Most in Three Months as Broker Probes Widen https://t.co/vR8EVggKUz via @business @frostyhk pic.twitter.com/FGkIyMvvMX

— Fion Li (@fion_li) November 27, 2015

The spotlight has been firmly on OPEC recently with many member nations bemoaning the decision made by Saudi Arabia to keep production steady as oil prices declined. With the price war at its maximum there was always going to be a race to see who could hold out the longest with US shale gas producers facing their own misfortunes of an overburdened debt crisis.

There's been a number of closures in the amount of gas rigs that have been opened which is most probably why the issues been put on the back burner for a while with producers concentrating their focus on the more efficient wells. But these measures are not doing enough to help support oil prices with producers facing a tougher situation of not be able to pay.

It seems as if the vultures are circling as credit rating agencies have said a staggering number of these producers are battling to pay the interest payments given the deteriorated condition in the oil market has led to junk bond status given to the quality of the bonds increasing the yield needed to obtain funding.

There is a bottoming feel around the current price of oil and it'll be interesting to see if we start to see some bankruptcy in the US shale gas sector and if it will have any significant impact on the price of oil but the longer producers hold out the longer we can expect to see the price of oil at these levels or even lower if the current economic climate continues or worse erodes further.

I've been following the headlines for most of the year and must admit I expected to see more development in terms of oil cuts taking place as opposed to what we've seen so far. We only hearing grumblings from those lower quantity higher cost players and my belief is we'll need to see a pinch in the larger producers before we see any reaction.

#Oil Watch: Debt bomb ticking for US shale https://t.co/Q1LkE7F2lq via @energyintel #oil #shale #opec #Texas pic.twitter.com/4k2xNH6y7l

— Javier Blas (@JavierBlas2) November 27, 2015