Russian Crude Oil Price Cap And Price Mechanism

Good Morning Everyone!

Remember, if Sam Bankman-Fried can steal $10 billion dollars and not get arrested, you can invest in the stock market every month.

Cambiar a la suscripción paga


Prices as of 4 pm ET, 11/22/22; % YTD


MARKET UPDATE

Volumes this week are close to yearly lows

  • Expect more of the same for today

Thursday U.S. Thanksgiving

  • U.S. stock exchange closed

  • Fixed income markets closed

Friday

  • U.S. stock exchange closed at 1 p.m.

  • Fixed income markets closed at 2 p.m.

2 p.m. Fed minutes from November 2nd meeting

  • Next Fed meeting December 14

VIX        

  • Volumes and Volatility are Low

  • VIX at its lowest level since August

Crude    $78          

  • Lower despite API reporting a crude draw

Europe diplomats meet today

  • with the goal of approving Russian crude oil price cap and price mechanism

  • EU discussing capping /Russian oil at $65-70 per bbl, close to the $78 it is trading today

  • Dual goal of:

    • Keep Russian oil flowing as much as possible

    • Limit Russian revenues

  • will probably not be met.

  • Russians can say “we’re selling at market prices” (to China, India, etc) thus keeping Russian production at current levels

    • Russian will probably not say “we’re selling at the cap”, so Russian revenues will not be limited.

  • Ultimately, the market price will determine what Russia does

    • If oil prices fall below the cap, will Russia reiterate that it won’t supply countries that participate in the cap?

Apple AAPL

  • Apple workers at its main China plant clashed with security staff

  • after being locked up for almost a month under Covid restriction

  • Best Buy BBY said high-end iPhones will be in short supply during the holiday season

Earnings

  • VMware VMW

  • Autodesk ADSK

  • HP HPQ will cut 10% of its workforce

  • Nordstrom JWN

  • Deere DE +3%, beat and guide raised,

  • Credit Suisse CS $88 billion in outflows, expects Q4 pre-tax loss of $1.6B 

CRYPTO UPDATE

Digital Currency Group

  • Says no imminent thread

  • Owes Genesis (which it owns) $575 million

    • Due May 2023

  • Also owes Genesis $1.1 billion on promissory note due June 2032

  • “Collectively we will come out of it stronger”

  • Genesis hired investment bank Moelis & Company to explore options including bankruptcy

Cathie Wood: still very bullish

  • Sticking to $1 million price target by 2030

  • Bitcoin BTC/USD will come out of crisis smelling like a “rose”

SBF apology letter to FTX staff

  • “I didn’t mean for any of this to happen, and I would give anything to be able to go back and do things over again”

  • “I did not realize the full extent of the margin position, nor did I realize the magnitude of the risk posed by a hyper-correlated crash”

relates to Bankman-Fried Says Collateral Crashed by $51 Billion as FTX Fell

 

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: CryptocurrencyEarningsNewsPenny StocksMarketscontributorsmarket update
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!