BNO

Oil prices fell on Wednesday after an industry group reported a rise in U.S. crude inventories against expectations for a decline, adding to worries about demand that led to a steep selloff earlier in the week.

Non-OPEC production dropped slowly from a high of 52,638 kb/d in December 2019 to 52,396 kb/d in March 2020.Maintenance and extensive turnarounds planned between September and November could shave around 200,000 b/d from Brazil's output.World oil production in May decreased by 11,417 kb/d to 71,374 kb/d.

Oil prices have, once again, dropped below $40.00 a barrel, as the demand for oil and gas continues to wane and the supply of oil is being maintained.Given this economic scene, the years and years of debt accumulation on the part of firms within the industry is catching up and bankruptcies are accelerating.There are few choices for these "zombie" companies, because consolidation in the industry cannot really take place until balance sheets are cleaned up.

OPEC+'s market monitoring committee met Sept. 17.The committee decided to keep current cuts at 7.7 million barrels per day.But the global demand recovery has stalled.Saudi prince sent a warning to short sellers.Newest headache: A statement that Libya will revamp production, but no schedule has yet been reported.

This article will cover four key macroeconomic themes for year-end 2020.These themes are the Treasury market, oil prices, US dollar foreign exchange rates, and China's economy.I believe these forces will determine the direction of the global stock markets.That is, higher Treasury yields, lower oil prices, stronger USD, and weakening of China's economy will push global stock indexes lower.

A higher low as the stock market hit a speed bump. Inventories have declined in nine of the past twelve weeks. The seeds of inflation are potent. Crude oil is waiting for the US election. High-quality petroleum stocks for investing and the UCO and SCO for a trading alternative to futures.

The bearishness in the market was emphasized by the monthly oil reports from both OPEC and the International Energy Agency.Despite that, Brent hit $43.15 per barrel and WTI crude price rose to $41.11 per barrel.OPEC’s latest reassurances to its commitment to balance the market spurred confidence and pushed up prices higher.

The Economist and FT both wrote a piece about the death of oil (essentially).Both pieces were driven by BP's latest long-term energy outlook, which predicts that global oil demand has already peaked.We break the report down into five-key flaws we see. And why we think BP's long-term outlook is DOA.But more importantly, we see the recent bearish headlines as a sentiment guidepost for the recent bearishness in oil and energy.This has likely marked the cycle bottom for energy stocks.