More US Consumers Falling Behind on Loan Payments as Interest Rates Rise
August 22, 2023
The weak Chinese market continues to put pressure on crude oil prices. China purchased a large amount of crude oil earlier this year and put most of it into storage. Reports indicate they are using that oil now as opposed to paying the current higher price. Shipment of oil to China from Saudi Arabia fell by 31% in June according to Chinese customs data and in July the imports were reported at a 13-month low.
Bloomberg is reporting that according to TankerTrackers.com Inc., which provides data on oil cargo shipments to governments, insurers, and other institutions, estimates that Iran exported 2.2 million barrel per day of crude oil and condensate during the first 20 days of August. If this rate of exports is maintained for the rest of the month, it would far exceed any other month this year.
Reuters reports S&P Global cut credit ratings and revised its outlook for multiple US banks, following a similar move by Moody’s, warning that funding risks and weaker profitability will likely test the sector’s credit strength.
John Kemp reports US consumers are falling behind on load repayments in greater numbers as interest rates increase. The proportion of consumer loans (credit cards and other consumer loans) with payments 30 days or more past-due climbed to 2.25% at the end of June 2023, the highest for the time of year since June 2013, and up from 1.71% in June 2022.
Turkey and Iraq oil ministers are meeting today to discuss the currently halted 450,000 barrel per day of oil exports from Turkey’s Ceyhan oil terminal. These exports have been stopped since March 25th. If progress is made in these talks, it could mean more oil for the global market and could pressure prices lower.