While the markets await the outcome from the Fed meeting and oil traders fret about whether OPEC and non-OPEC might raise production, as well as the weekly supply report, the biggest threat to the price of crude oil and the global economy may be the lack of spare oil production capacity. Reuters reports that global spare oil production capacity could fall from more than 3% of global demand now to about 2%, its lowest since at least 1984, if OPEC, Russia and other producers decide to increase output when they meet on June 22-23. Some analysts say spare capacity could even fall below 2%, after years of low oil prices drove down investments in new production across the industry to a historic low.
- Next story US Dollar Gains as FOMC Hikes Rates, Outlines Plans for Two More in 2018
- Previous story GBP/USD Lags Behind as U.K. CPI Fails to Boost Bets for BoE Rate-Hike
- Gold Prices May Rise as US, China Trade Spat Sinks Bond Yields
- Trade Wars Shake the Dow but No Freefall Yet, Dollar Stuck at the Border
- One Area Where Caveats Don’t Undermine Dollar Outlook: Emerging Markets
- AUD Vulnerable as US Mulls More Chinese Tariffs, RBA Minutes Pass
- EUR/USD Technical Analysis: Euro Down Move to Accelerate?
AAT BABA,BAX,OTCPK:NSRGY Banks Bitcoin Blockchain Blog Buy Gold CBRL China crisis Cryptocurriency Currency Debt DOLLAR Economy EGO European Union FB GE,PRGO,APC,DXC,WBA,ADI,WPM GLO,MSD,HTZ,THC,AKS,AVP,SM Gold goldcoin gold coin Gold coins Gold Price Gold Trend Analysis hard money HP inflation Investment KRNT,TRIL,TUES,SYRS,MRAM,MVIS,IOTS LSE:ACA Money News NOMD NXPI,DVMT,SINA,RYAAY,WFT,GOGO,AABA NXPI,ESES,AAP,HK,GST,CFCO,UPL ORCL,AMZN,MSFT,IBM Quantitative easing savings SPY,DJI,QQQ Uncategorized United Kingdom USA VIAV,MMYT,KHC,EPC,TWX,BABA,AABA