Month: November 2020

EIA projects $43 oil, flat U.S. production in the first half of 2021

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WASHINGTON, DC – The U.S. Energy Information Administration reported that a record 12.9 million barrels per day (bpd) of crude oil was produced in the United States in November 2019 and was at 12.7 million bpd in March 2020, when the President declared a national emergency concerning the COVID-19 outbreak. Crude oil production then fell to 10.0 million bpd in May 2020, the lowest level since January 2018. By August, the latest monthly data available in EIA’s series, production of crude oil had risen to 10.6 million bpd in the…

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OPEC+ ministers warn of continued oil demand fragility

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(Bloomberg) –As OPEC+ began talks on whether to postpone January’s oil-production increase, ministers sounded cautious about the strength of global demand. Saudi Energy Minister Prince Abdulaziz bin Salman said he could see a light at the end of the tunnel thanks to the development of Covid-19 vaccines, but the market had some way to go before getting there. His counterparts from Algeria and Russia talked about bumps in the road and an uncertain winter, adding to the impression that the group is open to considering a delay. “There has been…

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Holes in budgeted, authorised and actual development spending

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When an economy takes a downturn, private investors and bankers tend to avoid much of the business risks thus the government’s development spending serves as a stimulus for economic growth and creates jobs. The capital spending on social and physical infrastructure also provides the private sector with business opportunities. However, according to the latest reported update issued by the Ministry of Finance, the government’s capacity to undertake development programmes seems to be shrinking not expanding though coronavirus/lockdown may be partially but not wholly responsible. Issues limiting development spending range from…

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Falling off a cliff with an uphill task ahead

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The rupee has gained around 18 paisas each day since hitting a trough of Rs168.43 on August 26 against the dollar. The rupee on Nov 13 hit a six-month high of Rs158.33 against the greenback. Between these months, markets have reacted to the first quarterly surplus in more than five years, $2 billion in remittances for five consecutive months, extension in debt suspension initiative by the G20 countries, low oil prices and reportedly significant dollar inflows under the Roshan Digital Accounts. The real effective exchange rate for September at 94.119…

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Facilitating foreign investors

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After launching Roshan Digital Accounts for overseas Pakistanis to boost both home remittances and foreign portfolio investment (FPI) in government debt securities, Pakistan is now trying to boost foreign direct investment (FDI) and exports. The purpose is to keep the balance of payments in shape at a time when geopolitical compulsions and a Covid-19–triggered global economic slowdown pose challenges for the heavily indebted country. Pakistan’s total external debt and liabilities went up to $113.8 billion in September from $107bn in a year ago. The International Monetary Fund (IMF) has put…

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