The last time semis stocks did this they dropped 14%

Semis stocks are their most overbought in more than a year 3:15 PM ET Wed, 17 April 2019 | 03:09Semis are on fire. The SMH ETF’s relative strength index, a momentum measure, has stretched past 70, the level that typically indicates overbought conditions. “If you look back at February, as the semis were moving higher, the SMH hit 70. Not all semis stocks have performed well over the past year, though. The SMH ETF trades at 17 times forward earnings, but its constituents vary wildly.


Semis stocks are their most overbought in more than a year 3:15 PM ET Wed, 17 April 2019 | 03:09Semis are on fire. The SMH ETF’s relative strength index, a momentum measure, has stretched past 70, the level that typically indicates overbought conditions. “If you look back at February, as the semis were moving higher, the SMH hit 70. Not all semis stocks have performed well over the past year, though. The SMH ETF trades at 17 times forward earnings, but its constituents vary wildly.
The last time semis stocks did this they dropped 14% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-18  Authors: keris lahiff, michaela rehle, getty images, monty rakusen, cultura, sopa images, lightrocket, johannes eisele, afp, kcna
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The last time semis stocks did this they dropped 14%

Semis stocks are their most overbought in more than a year 3:15 PM ET Wed, 17 April 2019 | 03:09

Semis are on fire.

The SMH semiconductor ETF has surged nearly 5% in the past week, getting a boost from Qualcomm after it settled a years-long royalties dispute with Apple.

However, that spike has taken the chips to their most overbought levels since January 2018. The SMH ETF’s relative strength index, a momentum measure, has stretched past 70, the level that typically indicates overbought conditions. The last time its RSI was that high at the beginning of last year it marked a peak that preceded a 14% drop in less than three weeks.

JC O’Hara, chief market technician at MKM Partners, isn’t worried.

“I never want to use the word ‘overbought’ because it carries such a bad connotation. What is really overbought? Overbought is just a momentum surge,” O’Hara said on CNBC’s “Trading Nation” on Wednesday. “If you look back at February, as the semis were moving higher, the SMH hit 70. If you sold then, you would have missed an additional 12% on the upside.”

Since the ETF’s RSI peaked above 70 in late February, it has rallied to its highest level ever. The ETF notched fresh records on Tuesday and Wednesday.

“Taking a step back, overbought is actually a good thing, so we would look to be buyers of any sort of minor weakness here because we actually think the strong trends continue higher from here,” said O’Hara.

Not all semis stocks have performed well over the past year, though. While Advanced Micro Devices has rocketed 165% higher in 12 months, Nvidia has plummeted 21%. Those disparate performances are a red flag to Gina Sanchez, CEO of Chantico Global.

“The semis are a challenge right now to trade as a group,” Sanchez said on the CNBC segment. “The sector as a whole is still trading below its long-term valuation, so you could argue that that’s a buy. But I’m going to tell you there’s a lot of different stories trading in that whole group of stocks.”

The SMH ETF trades at 17 times forward earnings, but its constituents vary wildly. Micron Technology, for instance, trades at 8 times earnings, while Universal Display trades with an 67 times multiple.


Company: cnbc, Activity: cnbc, Date: 2019-04-18  Authors: keris lahiff, michaela rehle, getty images, monty rakusen, cultura, sopa images, lightrocket, johannes eisele, afp, kcna
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70% of Wall Street thinks Trump will be reelected in 2020

That’s not to say that the election of a Democratic candidate in 2020 would necessarily put a damper on the equity market. “Early polls for 2020 Democratic Presidential Nomination are favoring Joe Biden,” the strategist added. Sen. Elizabeth Warren, D-Mass., is seen by a majority as the least acceptable Democratic candidate for the stock market. What Wall Street expects isn’t always a good predictor of what will happen, however. At that time, Wall Street economists thought that Ohio Republican J


That’s not to say that the election of a Democratic candidate in 2020 would necessarily put a damper on the equity market. “Early polls for 2020 Democratic Presidential Nomination are favoring Joe Biden,” the strategist added. Sen. Elizabeth Warren, D-Mass., is seen by a majority as the least acceptable Democratic candidate for the stock market. What Wall Street expects isn’t always a good predictor of what will happen, however. At that time, Wall Street economists thought that Ohio Republican J
70% of Wall Street thinks Trump will be reelected in 2020 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-05  Authors: thomas franck, yuri gripas
Keywords: news, cnbc, companies, reelected, 70, election, biden, street, democratic, nomination, investors, wall, thinks, stock, 2020, candidate, survey, trump


70% of Wall Street thinks Trump will be reelected in 2020

The survey was conducted after special counsel Robert Mueller gave the results of his investigation to the Justice Department; 141 equity-focused institutional investors were polled.

Presidential elections can have important implications for financial markets based on what traders believe the elected candidate will prioritize while in office. The Dow Jones Industrial Average rallied more than 450 points in the two days following Trump’s election in 2016 and jumped nearly 8 percent into year-end as investors grew confident in future corporate tax reform and big spending.

That’s not to say that the election of a Democratic candidate in 2020 would necessarily put a damper on the equity market.

Calvasina added that 40% of investors have already made changes to their portfolio in anticipation of the election or indicated that they plan to do so. Further, the stock strategist said that if Biden does not declare, or the polling data suggests that he won’t win the Democratic nomination, it could weigh on the market because of the anti-business policies of the other contenders.

“Early polls for 2020 Democratic Presidential Nomination are favoring Joe Biden,” the strategist added. “Bernie Sanders comes in second place, by a 7 point spread relative to Biden, however, Sanders is seen by our Survey respondents as the second least acceptable Democratic candidate by the stock market.”

Sen. Elizabeth Warren, D-Mass., is seen by a majority as the least acceptable Democratic candidate for the stock market.

What Wall Street expects isn’t always a good predictor of what will happen, however. During the 2016 election, a CNBC Fed Survey found that 80 percent of respondents saw Democrat Hillary Clinton winning the presidency, well ahead of the 13 percent who thought Trump would win.

At that time, Wall Street economists thought that Ohio Republican John Kasich’s policies were best for the economy and for the stock market, though he ultimately lost the party’s nomination to Trump.


Company: cnbc, Activity: cnbc, Date: 2019-04-05  Authors: thomas franck, yuri gripas
Keywords: news, cnbc, companies, reelected, 70, election, biden, street, democratic, nomination, investors, wall, thinks, stock, 2020, candidate, survey, trump


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Lyft ups expected IPO price to between $70 and $72 a share

Lyft increased its expected IPO share price range to between $70 and $72 per share in a new filing Wednesday. The company previously expected to price its shares between $62 and $68. Lyft is expected to price its shares Thursday and go public Friday on the Nasdaq under the ticker LYFT. The company has been clawing market share from industry leader Uber, according to its S-1 filing that was released earlier this month. Uber, Lyft’s chief rival, is expected to release its S-1 and go public in Apri


Lyft increased its expected IPO share price range to between $70 and $72 per share in a new filing Wednesday. The company previously expected to price its shares between $62 and $68. Lyft is expected to price its shares Thursday and go public Friday on the Nasdaq under the ticker LYFT. The company has been clawing market share from industry leader Uber, according to its S-1 filing that was released earlier this month. Uber, Lyft’s chief rival, is expected to release its S-1 and go public in Apri
Lyft ups expected IPO price to between $70 and $72 a share Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-27  Authors: sara salinas, steve kovach, shannon stapleton
Keywords: news, cnbc, companies, 70, price, 72, uber, public, ups, market, ipo, billion, s1, share, lyft, expected, shares, company


Lyft ups expected IPO price to between $70 and $72 a share

Lyft increased its expected IPO share price range to between $70 and $72 per share in a new filing Wednesday. The company previously expected to price its shares between $62 and $68.

The company would be valued around $20 billion in the updated pricing range.

Lyft is expected to price its shares Thursday and go public Friday on the Nasdaq under the ticker LYFT.

The company has been clawing market share from industry leader Uber, according to its S-1 filing that was released earlier this month. Lyft claimed 39 percent of the U.S. market at the end 2018, up 17 percentage points over two years, according to the filing.

Here’s how the company said it did in 2018:

Net loss: $911 million, an increase of 32 percent from 2017

Revenue: $2.2 billion, double the revenue it saw in 2017

Bookings: $8.1 billion, an increase of 76 percent from 2017

Lyft is one of several large tech companies expected to go public this year, including Uber, Pinterest, Zoom and Slack. Uber, Lyft’s chief rival, is expected to release its S-1 and go public in April.

Lyft has been named to the CNBC Disruptor 50 List three times, ranking fifth on the 2018 list.

J.P. Morgan, Credit Suisse and Jefferies are the lead underwriters of the offering.


Company: cnbc, Activity: cnbc, Date: 2019-03-27  Authors: sara salinas, steve kovach, shannon stapleton
Keywords: news, cnbc, companies, 70, price, 72, uber, public, ups, market, ipo, billion, s1, share, lyft, expected, shares, company


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Lyft ups expected IPO price to between $70 and $72 a share

Lyft increased its expected IPO share price range to between $70 and $72 per share in a new filing Wednesday. The company previously expected to price its shares between $62 and $68. Lyft is expected to price its shares Thursday and go public Friday on the Nasdaq under the ticker LYFT. The company has been clawing market share from industry leader Uber, according to its S-1 filing that was released earlier this month. Uber, Lyft’s chief rival, is expected to release its S-1 and go public in Apri


Lyft increased its expected IPO share price range to between $70 and $72 per share in a new filing Wednesday. The company previously expected to price its shares between $62 and $68. Lyft is expected to price its shares Thursday and go public Friday on the Nasdaq under the ticker LYFT. The company has been clawing market share from industry leader Uber, according to its S-1 filing that was released earlier this month. Uber, Lyft’s chief rival, is expected to release its S-1 and go public in Apri
Lyft ups expected IPO price to between $70 and $72 a share Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-27  Authors: sara salinas, steve kovach, shannon stapleton
Keywords: news, cnbc, companies, 70, price, 72, uber, public, ups, market, ipo, billion, s1, share, lyft, expected, shares, company


Lyft ups expected IPO price to between $70 and $72 a share

Lyft increased its expected IPO share price range to between $70 and $72 per share in a new filing Wednesday. The company previously expected to price its shares between $62 and $68.

The company would be valued around $20 billion in the updated pricing range.

Lyft is expected to price its shares Thursday and go public Friday on the Nasdaq under the ticker LYFT.

The company has been clawing market share from industry leader Uber, according to its S-1 filing that was released earlier this month. Lyft claimed 39 percent of the U.S. market at the end 2018, up 17 percentage points over two years, according to the filing.

Here’s how the company said it did in 2018:

Net loss: $911 million, an increase of 32 percent from 2017

Revenue: $2.2 billion, double the revenue it saw in 2017

Bookings: $8.1 billion, an increase of 76 percent from 2017

Lyft is one of several large tech companies expected to go public this year, including Uber, Pinterest, Zoom and Slack. Uber, Lyft’s chief rival, is expected to release its S-1 and go public in April.

Lyft has been named to the CNBC Disruptor 50 List three times, ranking fifth on the 2018 list.

J.P. Morgan, Credit Suisse and Jefferies are the lead underwriters of the offering.


Company: cnbc, Activity: cnbc, Date: 2019-03-27  Authors: sara salinas, steve kovach, shannon stapleton
Keywords: news, cnbc, companies, 70, price, 72, uber, public, ups, market, ipo, billion, s1, share, lyft, expected, shares, company


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70% of Americans with credit card debt admit they can’t pay it off this year

Almost half of Americans carry a balance on their credit cards, a new survey finds, and paying it off is proving a challenge: Only about 30 percent of people with credit card debt say they’ll be able to wipe it out this year. A new survey of 1,000 credit card users by real estate data company Clever found that 47 percent of Americans carry a monthly balance on their credit cards. Of them, over 70 percent say that balance is more than $1,000 on average. Over half of those surveyed, 56 percent, sa


Almost half of Americans carry a balance on their credit cards, a new survey finds, and paying it off is proving a challenge: Only about 30 percent of people with credit card debt say they’ll be able to wipe it out this year. A new survey of 1,000 credit card users by real estate data company Clever found that 47 percent of Americans carry a monthly balance on their credit cards. Of them, over 70 percent say that balance is more than $1,000 on average. Over half of those surveyed, 56 percent, sa
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Company: cnbc, Activity: cnbc, Date: 2019-03-19  Authors: megan leonhardt
Keywords: news, cnbc, companies, survey, card, say, 70, carry, credit, theyll, cant, pay, monthly, debt, balance, admit, americans


70% of Americans with credit card debt admit they can't pay it off this year

Almost half of Americans carry a balance on their credit cards, a new survey finds, and paying it off is proving a challenge: Only about 30 percent of people with credit card debt say they’ll be able to wipe it out this year.

A new survey of 1,000 credit card users by real estate data company Clever found that 47 percent of Americans carry a monthly balance on their credit cards. Of them, over 70 percent say that balance is more than $1,000 on average.

Over half of those surveyed, 56 percent, say they’ve had credit card debt for at least a year. And most will continue to carry it for years to come. Almost 20 percent estimate it will take them more than three years to pay off their debt, while roughly 8 percent say they don’t know when they’ll be able to pay it down.

“It’s a big issue,” Ted Rossman, credit industry expert for CreditCards.com, tells CNBC Make It. Especially now: The average credit card APR sits at a record-high 17.65 percent, so the interest accrued on monthly balances can quickly add up.


Company: cnbc, Activity: cnbc, Date: 2019-03-19  Authors: megan leonhardt
Keywords: news, cnbc, companies, survey, card, say, 70, carry, credit, theyll, cant, pay, monthly, debt, balance, admit, americans


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The gap between cheap and expensive stocks is the widest in 70 years

“Value tends to outperform when dispersion in valuations across the market is at its widest,” said Bernstein’s Inigo Fraser-Jenkins in a note on Wednesday. This provides a support for value within the market contrasted with traditional asset classes which are mostly fully valued.” According to Bernstein, the composite value stocks lost 1.04 percent year-to-date, versus the S&P 500’s more than 11 percent gain. Bernstein said investors could buy cheap individual stocks in different sectors, or the


“Value tends to outperform when dispersion in valuations across the market is at its widest,” said Bernstein’s Inigo Fraser-Jenkins in a note on Wednesday. This provides a support for value within the market contrasted with traditional asset classes which are mostly fully valued.” According to Bernstein, the composite value stocks lost 1.04 percent year-to-date, versus the S&P 500’s more than 11 percent gain. Bernstein said investors could buy cheap individual stocks in different sectors, or the
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Keywords: news, cnbc, companies, widest, gap, sp, residual, 70, analysts, outperform, stocks, quarter, earnings, value, cheap, tends, expensive, market


The gap between cheap and expensive stocks is the widest in 70 years

“Value tends to outperform when dispersion in valuations across the market is at its widest,” said Bernstein’s Inigo Fraser-Jenkins in a note on Wednesday. “Valuation spreads are incredibly wide and sentiment may have found a floor. This provides a support for value within the market contrasted with traditional asset classes which are mostly fully valued.”

The stock market has staged a strong comeback, with the S&P 500 notching the best two-month start to a year since 1991, but value stocks seemed to have missed the rally. According to Bernstein, the composite value stocks lost 1.04 percent year-to-date, versus the S&P 500’s more than 11 percent gain. Many have argued that the market rebound is not fundamentally driven, as earnings and growth expectations have come down.

“Value as a style tends to perform better than average when there have been extreme troughs in the earnings revisions balance series particularly 6 to 12 months following the point of most aggressive downgrades,” Fraser-Jenkins said.

Wall Street analysts have been aggressive when it comes to slashing their earnings expectations. The estimates for the S&P 500’s first quarter earnings have dropped 6.5 percent in the first two months of 2019 alone, the largest cut since the first quarter in 2016, according to FactSet. Analysts are projecting an earnings loss of 3.2 percent in the first quarter and a gain of 4.1 percent for 2019.

Bernstein said investors could buy cheap individual stocks in different sectors, or they could buy stocks that are “cheap per unit fundamentals,” their so-called “residual value factor.”

The stocks that screen well on residual value and are also rated outperform by Bernstein analysts include Imperial Brands, DowDuPont, Goldman Sachs and Micron Technology.

WATCH: Chip stocks are ripping in 2019


Company: cnbc, Activity: cnbc, Date: 2019-03-06  Authors: yun li, johannes eisele, afp, getty images
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Bangladesh building fire kills at least 70, death toll could climb

The death toll from a fire in a centuries-old area of the Bangladesh capital, Dhaka, jumped dramatically to 70 on Thursday, a fire official said, and could keep climbing as fire fighters combed the wreckage of the destroyed building. Large building fires are relatively common in impoverished Bangladesh, due in part to lax regulations, and have killed hundreds of people in recent years. Hundreds of people rushed to the Dhaka Medical College and Hospital to search for missing relatives, witnesses


The death toll from a fire in a centuries-old area of the Bangladesh capital, Dhaka, jumped dramatically to 70 on Thursday, a fire official said, and could keep climbing as fire fighters combed the wreckage of the destroyed building. Large building fires are relatively common in impoverished Bangladesh, due in part to lax regulations, and have killed hundreds of people in recent years. Hundreds of people rushed to the Dhaka Medical College and Hospital to search for missing relatives, witnesses
Bangladesh building fire kills at least 70, death toll could climb Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: mohammad al-masum molla, picture alliance, getty images
Keywords: news, cnbc, companies, 70, toll, kills, death, killed, regulations, search, nearby, building, hundreds, lax, dhaka, bangladesh, climb, told


Bangladesh building fire kills at least 70, death toll could climb

The death toll from a fire in a centuries-old area of the Bangladesh capital, Dhaka, jumped dramatically to 70 on Thursday, a fire official said, and could keep climbing as fire fighters combed the wreckage of the destroyed building.

Large building fires are relatively common in impoverished Bangladesh, due in part to lax regulations, and have killed hundreds of people in recent years.

“So far, 70 bodies have been recovered. The number could rise further as the search is continuing,” Julfikar Rahman, a director of the Fire Service and Civil Defence, told Reuters.

The fire started in a four-story building on Wednesday night and spread to nearby buildings in the Chawkbazar area of Old Dhaka, which dates back to the Mughal period more than 300 years ago.

Rahman said at least 50 people had been taken to hospital, some in critical condition. Hundreds of people rushed to the Dhaka Medical College and Hospital to search for missing relatives, witnesses said.

About 200 firefighters fought for more than five hours to bring the blaze under control. They told reporters the building where the fire began had housed a plastics warehouse and contained flammable material.

Rahman said the cause was still under investigation. He said firefighters had struggled to find enough water to fight the blaze and had to draw supplies from a nearby mosque.

The fire is likely to focus attention on lax enforcement of building safety regulations in Bangladesh, where accidents kill hundreds every year.

The Rana Plaza factory collapse in 2013 killed more than 1,100 workers and a fire in a garment factory in 2012 killed 112 people.


Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: mohammad al-masum molla, picture alliance, getty images
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A recession indicator with a perfect track record over 70 years is close to being triggered

He pointed to the example of a recession in 1953 when the unemployment rate rose to just 3.1 percent, and in 1981 when the cyclical low in the unemployment rate was high at 7.2 percent. The unemployment rate, reported Feb. 1, rose to 4 percent in January from 3.9 percent. “The current rise is notable and would be troubling if it continues,” notes Lavorgna. Lavorgna, however, puts the risk of a recession at about one in three, and he expects the unemployment rate to head lower again, not higher.


He pointed to the example of a recession in 1953 when the unemployment rate rose to just 3.1 percent, and in 1981 when the cyclical low in the unemployment rate was high at 7.2 percent. The unemployment rate, reported Feb. 1, rose to 4 percent in January from 3.9 percent. “The current rise is notable and would be troubling if it continues,” notes Lavorgna. Lavorgna, however, puts the risk of a recession at about one in three, and he expects the unemployment rate to head lower again, not higher.
A recession indicator with a perfect track record over 70 years is close to being triggered Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: patti domm, patrick t fallon, bloomberg, getty images
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A recession indicator with a perfect track record over 70 years is close to being triggered

‘The economy feels like it has a lot of momentum,’ says ADP CEO after strong jobs data 7:03 PM ET Fri, 1 Feb 2019 | 06:09

He said a recession occurred in the 11 instances regardless of the level of unemployment. He pointed to the example of a recession in 1953 when the unemployment rate rose to just 3.1 percent, and in 1981 when the cyclical low in the unemployment rate was high at 7.2 percent.

The unemployment rate, reported Feb. 1, rose to 4 percent in January from 3.9 percent. It is currently 30 basis points above the low of 3.7 percent reported in November.

“The current rise is notable and would be troubling if it continues,” notes Lavorgna. Lavorgna, however, puts the risk of a recession at about one in three, and he expects the unemployment rate to head lower again, not higher.

“The recent increase in the rate has been due to rising labor force participation, which is a sign of economic strength not weakness,” he notes. The unemployment rate has risen for what economists say is a good reason — the long term unemployed are returning to the workforce and looking for jobs. .

“Generally job growth is positive just before a recession,” said LaVorgna. Job growth has averaged 240,000 over the past three months.

Lavorgna said there are mitigating factors that may make this cycle different. Lavorgna said the Fed’s policy about face is important because financial conditions have improved in the last six weeks, making recession less likely.

But he also says several of the economic series that could signal the end of a cycle may have peaked including ISM, jobless claims and the yield curve.

WATCH: LaVorgna says if Fed continues on its current path, we see a recession by 2020


Company: cnbc, Activity: cnbc, Date: 2019-02-20  Authors: patti domm, patrick t fallon, bloomberg, getty images
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Goldman sees oil rising toward $70, says demand forecasts are too gloomy

Oil prices have struggled to rally above $64 a barrel since last quarter’s sharp pullback, but Goldman Sachs believes crude futures could break out in the coming months. Goldman’s outlook is based on its view that forecasts for demand growth have grown too gloomy and OPEC has adopted a “shock and awe” approach to pulling back supply. “Our constructive outlook for oil prices in 1H19 is predicated on both large supply cuts as well as resilient oil demand growth,” Goldman analysts said in a researc


Oil prices have struggled to rally above $64 a barrel since last quarter’s sharp pullback, but Goldman Sachs believes crude futures could break out in the coming months. Goldman’s outlook is based on its view that forecasts for demand growth have grown too gloomy and OPEC has adopted a “shock and awe” approach to pulling back supply. “Our constructive outlook for oil prices in 1H19 is predicated on both large supply cuts as well as resilient oil demand growth,” Goldman analysts said in a researc
Goldman sees oil rising toward $70, says demand forecasts are too gloomy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-13  Authors: tom dichristopher, nick oxford
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Goldman sees oil rising toward $70, says demand forecasts are too gloomy

Oil prices have struggled to rally above $64 a barrel since last quarter’s sharp pullback, but Goldman Sachs believes crude futures could break out in the coming months.

The investment bank forecasts international benchmark Brent crude will peak at $67.50 a barrel in the second quarter. Goldman’s outlook is based on its view that forecasts for demand growth have grown too gloomy and OPEC has adopted a “shock and awe” approach to pulling back supply.

“Our constructive outlook for oil prices in 1H19 is predicated on both large supply cuts as well as resilient oil demand growth,” Goldman analysts said in a research note released on Tuesday evening.

Goldman believes the world’s appetite for oil will grow by 1.4 million barrels per day in 2019. That’s in line with the International Energy Agency’s outlook, but above the consensus on Wall Street and OPEC’s view that demand will grow by just 1.24 million bpd.


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$60 to $70 is a fair price for a barrel of oil, Egypt’s petroleum minister says

There is a fair price for a barrel of oil and OPEC and its non-OPEC partners are close to achieving it through their deal to cut production, according to Egypt’s Petroleum Minister Tarek El-Molla. “It is in the range between $60 and $70 a barrel … somewhere in this bracket of price,” El Molla told CNBC on Sunday when asked if oil prices were at an acceptable level to keep producers and consumers happy. If we see prices go down below a certain price then we will see a slowdown in investments,” he


There is a fair price for a barrel of oil and OPEC and its non-OPEC partners are close to achieving it through their deal to cut production, according to Egypt’s Petroleum Minister Tarek El-Molla. “It is in the range between $60 and $70 a barrel … somewhere in this bracket of price,” El Molla told CNBC on Sunday when asked if oil prices were at an acceptable level to keep producers and consumers happy. If we see prices go down below a certain price then we will see a slowdown in investments,” he
$60 to $70 is a fair price for a barrel of oil, Egypt’s petroleum minister says Cached Page below :
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$60 to $70 is a fair price for a barrel of oil, Egypt's petroleum minister says

There is a fair price for a barrel of oil and OPEC and its non-OPEC partners are close to achieving it through their deal to cut production, according to Egypt’s Petroleum Minister Tarek El-Molla.

“It is in the range between $60 and $70 a barrel … somewhere in this bracket of price,” El Molla told CNBC on Sunday when asked if oil prices were at an acceptable level to keep producers and consumers happy.

“If prices of crude increase significantly we would start to see inflation and an exaggeration in the slowdown in consumption from the other side. If we see prices go down below a certain price then we will see a slowdown in investments,” he said.

“So, actually, the fair equation is to have a balanced price between the producers and the consumers whereby each party is happy and to continue the growth of the global economy.”

Egypt is a significant oil and natural gas producer in the Middle East although it’s not a member of OPEC and its output is dwarfed by members of the oil producing group and other non-OPEC producers like Russia.

Egypt is aiming to boost production modestly in 2019, to 670,000 barrels a day, although its output still trails that of others in the region. The latest figures from OPEC’s monthly report in January showed that Egypt’s oil producing neighbors to the west, Libya and Algeria, produced 928,000 barrels a day and a million barrels a day respectively in December. OPEC lynchpin Saudi Arabia produced 10.5 million barrels a day.

OPEC and non-OPEC producers including Russia (collectively known as ‘OPEC plus’) have collaborated in recent years on cutting or increasing their oil production in a bid to stabilize oil prices which have been volatile since 2014.

They last agreed in December to cut oil production by 1.2 million barrels a day in order to put a floor under prices, which have fallen due to rising oil supply and lackluster demand amid an uncertain global growth outlook.

On Monday morning, Brent crude futures were trading at $61.87 a barrel while West Texas Intermediate (WTI) crude futures was trading at $52.25 a barrel. Prices took a dip in the early trading session on Monday after data showed drilling activity in the U.S., now the world’s largest oil producer, had increased again, pointing higher production.

The OPEC-Plus deal has not yet been realized fully with Russia slower to meet the desired output cut. Once the 1.2 million barrel a day cut was reached, El Molla said “I think it will adjust, and reach, the desired outcome of price.”

Speaking to CNBC’s Dan Murphy at the Egypt Petroleum Show, ‘EGYPS, ‘taking place in Cairo, El Molla said oil markets were “somehow close” to a price that can keep both oil producers happy because although oil prices have fallen from peaks of around $114 a barrel in mid-2014, production costs have also fallen with technological advances.

“With the advancement of technology, new ways of producing oil have added new volumes to the market and this technology means you’re reducing the cost per barrel, and what might have been accepted a few years ago back when we were talking about $100, or $90 or $80, a barrel oil wouldn’t be accepted now.”


Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: holly ellyatt, mohd jailanee othman, eyeem, getty images
Keywords: news, cnbc, companies, barrels, production, fair, million, egypts, barrel, minister, 60, prices, producers, day, petroleum, opec, oil, price, 70


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