The weekly EIA energy inventory levels
- Crude oil -2.101M versus estimate of 1.398M. Last week crude inventories rose 1.0M
- Gasoline -0.132M versus estimate of -0.575M. Last week gasoline inventories felt -0.122M
- Distillates -0.824M versus estimate of -1.229M. Last week distillates fell -2.613M
- Cushing 0.216M versus last week -0.034M.
- Refining utilization 1.200% versus expected 0.7%
- crude oil production 11.4M barrels versus 11.5M last week
The private data released late yesterday showed:
- Crude oil, build of 0.655M
- Gasoline, draw of -2.792M
- Distillates, build of 0.107M
- Cushing, draw of -0.491M
The crude oil drawdown is a surprise given the expectations and the private data
The price of crude oil was trading down one dollar at $79.83 (December). The price is currently trading at $79.89.
Latest data released by Eurostat – 17 November 2021
- Core CPI +2.0% vs +2.1% y/y prelim
The preliminary report can be found here. This just reaffirms that euro area inflation is at a 13-year high and will keep the pressure on the ECB in defending their narrative that inflation is still transitory going into next year.
Moody’s expects refinancing and default risks to remain high for certain property developers through the first half of 2022
As for the market as a whole, they see tightened funding access and increased investor risk aversion as key drivers for more defaults next year, arguing that:
“We expect the number of defaulters and amount of defaulted bonds in 2022 to remain low relative to China’s total onshore and offshore bonds. Chinese authorities will encourage debt restructuring or liquidation through the courts for distressed Chinese companies. But the authorities will step in to ensure stability if bond defaults were to spike and trigger systemic risk.”
They particularly single out property developers as being among the high risk profiles, with those having the characteristics of being “high leverage, reliance on the bond market with limited alternative funding channels, large or numerous short-term maturities” most exposed to potential credit risks in the months ahead.
That pretty much covers the likes of Evergrande and Kaisa, to name the two big ones.
The Wall Street Journal with the report ICYMI on U.S. authorities to liquidate roughly $56 million in proceeds seized.
- The government said it would start the process of restitution for those who fell victim to the BitConnect scheme by selling the cryptocurrency and holding the proceeds in U.S. dollars.
Here is the link to the Journal (may be gated) for more.
Lower BTC will be used by those wanting to buy the dip. Daily candle bar chart:
0120 GMT has ECB President Lagarde speaking at a female leaders via video conference
0900 GMT The ECB publishes its Financial Stability Review which is not typically market moving.
1400 GMT Exec Board Member Schnabel speaking on the economic and monetary policy outlook.
1830 GMT Lagarde again, speaking at an awards ceremony