Oil demand should outpace supply in the second half of this year but excess inventories will persist well into 2018, dealing a blow to global crude producers enacting output cuts to bring down stubbornly high stockpiles.
The forecast from the International Energy Agency comes as higher than expected demand growth next year is met by even stronger output from the US and other producers outside of the Opec cartel.
In its monthly oil market report, which include forecasts for next year, the Paris-based energy agency said: “[The] outlook for 2018 makes sobering reading for those producers looking to restrain supply.”
Opec and Russia have this year joined forces to cut output and reduce an oil market surplus that is keeping pressure on prices. Producers agreed in May to extend production cuts for a further nine months as US shale production accelerates and countries exempt from the curbs pump more.
The IEA expects global demand growth will increase by 1.4m b/d next year- from 1.3m b/d in 2017 – as China and India take total consumption to a record 99.3m b/d.
The RBI has trained its guns on a dozen bank accounts that are awash with bad loans for action under insolvency rules that could lead to the liquidation of the companies.
An internal committee of the Reserve Bank of India (RBI) has identified the 12 accounts that would be considered for resolution under Insolvency and Bankruptcy Code (IBC).
These accounts account for around 25 per cent of the gross non-performing assets (NPAs) of the banking system. Bad loans in the banking system are estimated at over Rs 8 lakh crore, meaning the NPAs in the 12 accounts are at over Rs 2 lakh crore.
The RBI had constituted an Internal Advisory Committee (IAC) comprising independent members of its board to advise it on cases that may come under the insolvency code.
This was part of an action plan of the central bank against bad loans under Banking Regulation (Amendment) Ordinance, 2017.
According to the ordinance, the RBI can issue directions to banks to initiate insolvency proceedings against defaulters.
The S&P index and Dow are both closing at record highs. The Nasdaq still has some ways to go but it too had a solid gain.
The S&P is closing up 10.96 points to 2440.35 (0.45% gain). The high reached 2441.49. The low traded down to 2431.28. The close took out the prior high close at 2439.07.
The Dow is closing at 21328.47, up 92.80 points (up 0.44%) . That is a record close for that index.
The Nasdaq was up 0.73% or 44.90 points to 6220.371. The close is still below the record level of 6321.76 (so it remains 101 points away). The index is also still below the 50% of the move down from the June 9th high (at 6226.18) AND the 100 hour MA at 6231. A move above those technical levels is still needed to push the price higher.
Saudi Arabia has introduced a new tax on cigarettes and energy drinks that has led to a 100-percent price hike, as the kingdom continues to struggle with sunken oil prices.
The newly introduced tax has cranked up prices on cigarettes and energy drinks across Saudi Arabia, according to various media reports. Prices for carbonated drinks have been increased by 50 percent as well.
The introduction of what has been dubbed a “sin tax” is officially meant to discourage consumption of harmful products that are likely to cause health problems, and will eventually increase medical expenses that are paid in part by the government, according to the official website of the country’s General Authority of Zakat and Tax (GAZT).
“We’ve communicated with the business sector and have set up many workshops to introduce the selective tax both at the GAZT and the Chamber of Commerce,” GAZT spokesperson told Arab News.
Under the new regulations, a pack of cigarettes costs between $4 and $6. Days before the introduction of the tax, smokers tried to buy up as many packs as they could, while shops did all they could to hide the merchandise from customers until after the new regulations came into effect.
As for energy drinks, they are now being sold with a warning, written both in Arabic and English, that reads, “This product does not have any health benefits. Consuming more than two cans a day may negatively affect your health.”