18 December 2018 by lberuti
Asian markets were on the back foot overnight after anxieties about economic growth swirled, when Chinese President Xi Jinping appeared to push back against US president Donald Trump in a speech he delivered in Beijin. A US government report published yesterday forecast a large increase of shale-oil production. Although Russia is supposed to be preparing to implement output curbs to comply with cuts agreed to by the Organisation of Petroleum Exporting Countries and their allies, Russian Energy Minister Alexander Novak said oil production is rising. The combination of fear about recession and scepticism about the ability of oil producers to coordinate in order to decrease the amount they pump is always a losing proposition for crude prices. They got battered today – Brent and WTI traded below $58 and $48 per barrel respectively – and reached their lowest level in more than a year. The group which has been identified by our clustering algorithm as “US Energy” and effectively regroups investment grade and high yield energy companies alike was the worst performer on the day by a fair margin.