Displaying items by tag: russia
Markets are plunging today, and the reason for the huge fall is the complete collapse of the oil market. The trouble is occurring because a price war is erupting in the oil market with Saudi Araba announcing that is was boosting production this morning. The move came as a response to Russia refusing to agree to production cuts to help insulate the market. The oil market responded by falling an eye-watering 30%. That immediately sent stocks plummeting too.
FINSUM: The market is doing its very best to compel Russia to agree to curb production. Surely a production cut wouldn’t cost them 30% of revenue!!
The Democrats are finally getting their time with Robert Mueller this week. Mueller is set to testify for a full five hours before the House Judiciary Committee and House Intelligence Committee on Wednesday. Democrats are seen as likely to push him to give further details on his investigation, especially into obstruction of justice claims, while Republicans are expected to probe him on bias within the FBI.
FINSUM: Everyone seems to agree—it is hard to imagine anything happening at these hearings that would change anyone’s mind.
The Mueller report was finally released this weekend, and the early indications are that there is nothing in it that proves any wrongdoing on the part of President Trump. Attorney General Barr’s summary to Congress, given yesterday, said there was no collusion between Trump and Russia and nothing in the report amounted to enough for a criminal charge of obstruction of justice. Trump called the report a “complete exoneration”.
FINSUM: So this is far from a “put to bed” issue because Barr’s credibility is under attack. Democrats are pledging to press on. However, one of the things we are very happy about in these divisive times is that the Mueller team had the discipline to take a clear position on the case and did not seek to inflate charges that were not really there in an effort to validate their own work.
Oil has been falling for several weeks, with prices dipping below the $50 mark for US crude. However, over the last couple of days, the price of black gold has surged. Investors may be left wondering what it all means. The answer is that Saudi Arabia and Russia announced their intentions to work together on another output cut, which sent prices surging. On the sidelines of the G-20, the Saudis and Vladimir Putin agreed to extend their output cuts. At the same times, Canada announced a curb on production.
FINSUM: Just as we have been saying, current movements in oil are particular to the sector and not indicative of the wider economy.
Investors need to be aware that big political news may be released any minute. That may not sound like much of a statement these days, but Bloomberg is reporting that Robert Mueller may release the findings from his investigations very soon. Bloomberg says Mueller is under immense pressure to release the findings of his probe or cease his investigation. He is especially under pressure to release whether he has found evidence of collusion between Trump and Russia and whether the president did anything to obstruct justice.
FINSUM: It seems likely that these findings won’t be released until after the midterms, but you never know if a politically-motivated early release right before the election might occur.