Warning Sign? Tech Companies Reduce Staff
November 4, 2022
Kpler shipping data showed that deliveries of US crude oil to Asia are set to reach a record 1.8 million bpd in November, as demand climbed on a widening discount to global oil. Refiners in China, India and South Korea are returning as big US crude oil buyers after several months of importing Russian barrels. Asia’s renewed buying reflects increasing demand for crude to produce diesel fuel and comes as Europe continued to stock up in the aftermath of Western sanctions on Russian purchases. According to Refinitiv, South Korea is set to import a record 619,000 bpd of US crude oil, becoming the months’ top Asian importer of US crude. China will draw at least 450,000 bpd, its highest since December of 2020 while India’s demand is forecast to be the highest since March.
News that China plans to remove some Covid Zero restrictions has oil markets higher this morning. Also, the news of the G7 countries getting more details of the Russian oil price cap line out. These are news headlines pushing prices on a Friday before the weekend.
Crude oil still has headwinds so the battle between recession (lower demand) and tight supplies continues. The Fed did again raise interest rates and Fed chair Jerome Powell was hawkish and that added selling pressure to energy prices yesterday but today the headlines mentioned above have prices up and the volatile range bound trading continues.
A warning sign for the US economy. Tech companies are reducing staff. Amazon said it would pause hiring corporate employees, Lyft will terminate 13% of its employees, and Stripe is letting go 14% of its workforce. Elon Musk the new owner of Twitter has said he will let go half of the workers.