E Market Briefing For Wednesday, Jan. 6

Of course at the moment all eyes are focused on Georgia; but none of it gives us what we need to extricate from this pandemic; which is better medicine. It's a tragedy and a shame, as the lack of proper preparedness, non-compliance of reasonable social guidelines to reduce the spread, encouraged by probably well-meaning but unrealistic politicians that aided-and-abetted cavalier crowds 'as if' they were immune to catching or carrying Covid, has made the lives of a throng of healthcare workers not only a living hell; but put them at risk as well.

Now what; that's a big question for people; for the FDA (they need to get off of their duffs and efficiently but rapidly approve 'better' tests and treatments); as well as for introspection for those (especially in media) that twisted truth while essentially letting people hear what they wanted to hear; not needed to hear.

Shattered bears shouldn't be surprised at a projected Tuesday turnaround; but they should recognize that worrisome aspects of this market remain.

However, despite today's move accelerating primarily because Saudi Arabia surprised OPEC with an extra 1 million bbl/daily output cut; a scale that's very significant and gives a hint about demand problems that persist, with an eye I think on the longer-term post-Covid rival, which will see recovered demand.

It is an effort to reduce supply to offset temporarily lean demand; so ultimately the solution for Oil demand is the same as most things: cure the entire world of Covid-19. I would not be surprised if Saudi's timing today related to the UK shutdown; with Europe and the UK far more dependent on Arabian crude than North America, which is self-sufficient in Oil & Gas.

Executive summary:

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