Thursday, March 24, 2016

Second-Biggest Oil Company To Cut Production, Cut Losses -- March 24, 2016

Jobs, unemployment claims:
  • last week, revised down by 6,000 from 265,000 to 259,000
  • this week, back up to 265,000, an increase of 6,000
  • the 4-week moving average increased 250
  • the previous week's 4-week average was revised down by 8,500 from 268,000 to 259,500
With all the revisions, the 4-week average is more volatile than the weekly number. Remember, these are seasonally adjusted and with all the revisions, it certainly suggests some massaging. Two possibilities: they factored in an early Easter (after forgetting about Easter) and/or they are looking at the primaries.

Active rigs:

Active Rigs32100197187206

RBN Energy: what $40 oil means to crude oil markets.

PetroChina ready to cut losses. Link here:
As oil’s collapse leaves some fields with no chance to turn a profit, China’s biggest producer is ready to cut its losses.
PetroChina Co. sees oil and gas output falling the first time in 17 years as it shuts high-cost fields that have “no hope” of making profits at current prices.
The world’s biggest oil company by market capitalization after Exxon Mobil Corp. said output will slide 2.7 percent this year to 1.45 billion barrels of oil equivalent as a drop in crude production overwhelms higher gas output.
There's actually a bigger story here than some observers might note. Obviously PetroChina wasn't exporting much of their oil; their country needs all they produce. With their biggest producer cutting back, China will be importing more oil.

This is a twofer. 

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