2) Reportedly, Chinese cities are going dark as the country faces shortages of coal, which is a major Australian export, as authorities limit power usage, citing the shortage of coal. Analysts said prices of the commodity in the country have shot up due to the reported crunch with some tying the shortages and blackouts to the unofficial ban on Australian coal. In turn, prices of the commodity have shot up due to the reported crunch. The reports also follow rising trade tensions between Beijing and Canberra, leading some analysts to tie the coal shortages and blackouts to the unofficial ban on Australian coal. Relations between the two nations have soured since last year because Australia supported an international inquiry into China’s handling of the coronavirus pandemic. Coal is just one in a growing list of Australian goods that China is targeting. China is the world’s largest coal consumer and its greatest source of coal imports was Australia.
3) Shale oil needs more than $50 a barrel to be profitable, something that is now a possibility because of Saudi Arabia’s pledge for a big supply cut in their oil production. But Joe Biden wants to ban new fracking in New Mexico, an area that has emerged as the ‘go-to’ spot for drillers desperate to squeeze as much crude from the ground without bleeding cash. The price was above $50 before the pandemic sent oil markets crashing, forcing over 40 explorers into bankrupt. It will take at least three months for shale producers to ramp up production, because that would involve decisions on new drilling and getting well-completion crews together, which puts their operations well into the new Biden administration.
4) Stock market closings for – 6 JAN 21:
Dow 30,829.40 up by 437.80
Nasdaq 12,740.79 down by 78.17
S&P 500 3,748.14 up by 21.28
10 Year Yield: up at 1.04%
Oil: up at $50.48