We can all breathe a sigh of relief now that we know the AI money printing press continues to chug away. After the bell yesterday, Nvidia reported earnings that nearly doubled their revenues on an annual basis.
The key business segment, chips for data centers, remains strong:
“Nvidia posted $30.8 billion in its data center division, rising 112% from a year ago, while analysts polled by StreetAccount were expecting $28.82 billion in revenue.”
However, that wasn’t enough to support shares in after-hours trading. Traders are tough to impress.
Now back to regular programming…
~Doug
What’s in this issue:
- Energy Market Recap
- OPEC in a Corner
- Headlines
| Crude Oil (Jan) | $68.75 | -0.49 | -0.71% |
| Natural Gas (Dec) | $3.193 | +0.195 | +6.50% |
| Copper (Dec) | $4.1555 | +0.0135 | +0.33% |
| S&P 500 | 5,917.11 | +0.13 | +0.00% |
Energy Markets  Oil prices declined by .7% as a lack of further geopolitical news was weighed against mixed EIA inventory data.The EIA showed a build in crude oil inventories of 500,000 barrels, however the individual PADD numbers were wildly divergent. The Midwest (PADD 2) showed a build of 1.8 mm barrels while the Gulf Coast (PADD 3) drew by 4.1 mm barrels. A WSJ poll showed analyst expectations of a draw of 800,000 barrels. December Contract Expiry The Dec WTI contract expired yesterday so front month quote is now Jan. Jan/Feb spread is +.23, so we can forget about that contango stuff for now.   Natural gas prices spiked on an anticipated pick up in weather demand and the anticipation that a late season of inventory builds will finally come to an end in the coming weeks.EIA inventory data is due out later today with expectations of another small build, perhaps the last of the season. |
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| OPEC+ in a Corner OPEC+ is expected to once again push back any increases to its production quotas when it meets in on December 1. It is widely accepted that any increase in production into the current weak-demand environment would crash prices. As one source told Reuters:”I can’t say it’s popular in the group but there would be no strong objection to a delay until the first quarter,” On the other hand, as Macquarie notes: “We think deeper cuts, which ultimately may be required to support oil prices next year, could be difficult to stomach,” |
| Headlines “Shredded cellphones, obsolete computer cables and chewed-up cars are heaped 30 feet high outside Glencore’s 97-year-old copper smelter deep in Canada’s sparsely populated boreal forest.” +Your Junk Is Needed for the New Electric Era – WSJ ”SMR startups, on the other hand, have bet their businesses on mass production and speedy installations. Still, none of those startups have built a commercial-scale reactor.” +Nuclear startups face new competition as energy giant Enel enters the ring – TechCrunch “It is not the big trade associations or the large energy multinationals that have the most influence with the Trump administration, rather it’s the smaller companies, the independents in the middle of the country, the wildcatters,” +How oil ‘wildcatters’ ended up in charge of Donald Trump’s energy policy – FT “Prolonged drought and extreme weather are forcing Canada to import electricity from the US after nearly two decades of exporting excess hydropower to its neighbour.” +Canada imports US electricity as droughts curb hydropower – FT |
| Economic Calendar Monday – Tuesday – Housing starts Wednesday – Weekly Crude Oil Storage Report, Nvidia reports Thursday – Weekly Natural Gas Storage Report, Jobless claims, Home sales Friday – Rig Count, PMI |
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