Updated: Apr 14, 2020
OG BRIEF #2
January 15, 2020
It's Not Easy Being a Houston Sports Fan
Born and raised in Houston, I've always been a Houston sports fanatic. This week, not so much...
On Sunday the Houston Texans blew a 21-0 lead in the NFL Divisional Playoffs, giving up 41 unanswered points and falling to the Kansas City Chiefs 51-31. Ouch.
If that didn't hurt enough, on Monday the MLB announced punishments for the Houston Astros after an investigation report was released regarding the team's sign-stealing scheme in the 2017 World Series. The team allegedly used a camera and trash-banging technique to tip off Astros batters as to the type of pitch to expect. Did this guarantee hits? No. Did this guarantee a World Series Title? No. Did it give the team an unfair advantage? Yes. The club's manager, AJ Hinch, and GM Jeff Luhnow were suspended by the league for one year, and then fired by the team owner, Jim Crane. They'll likely never coach baseball again. On top of that, the team was fined $5 million and forfeits first and second round draft picks for the next two years.
Aside from taking away the 2017 World Series Title or penalizing players, this is the death penalty of baseball.
Oil Prices Level Off After Large Drop
After a volatile start to the year, oil prices stabilized, but dipped below $60 for the first time in 2020. On Tuesday, the American Petroleum Institute (API) reported a 1.1M barrel build in inventories compared to analysts forecast of a 1.1M barrel draw. On Wednesday the US Energy Information Administration (EIA) reported a 2.5M barrel draw in inventories compared to analysts forecast of a 0.4M build. West Texas Intermediate (WTI) oil price dipped below $58/barrel after the report came out.
The Organization of Petroleum Exporting Countries (OPEC) released it's Monthly Oil Market Report Wednesday and initial outlook for 2020. OPEC increased its 2020 world oil demand growth forecast by 140,000 barrels to 1.22M barrels/day, nudging its global economic growth forecast to 3.1% for 2020 and cutting it's 2020 non-OPEC production growth estimate by a slight 34,000 barrels/day to 2.17M barrels/day. The International Energy Association (IEA) releases it's Monthly Oil Market Report Thursday. I'll cover these reports plus my outlook for 2020 in more detail next week.
What To Watch For Next Week:
Tues, Jan 21: Crude Oil Futures Contract Rollover to March
Tues, Jan 21: Halliburton (HAL) reports earnings @ Pre-Market
Wed, Jan 22: Baker Hughes (BKR) reports earnings @ Pre-Market
Wed, Jan 22: API Weekly Crude Oil Inventories @ 3:30pm CST
Wed, Jan 23: EIA Weekly Natural Gas Storage @ 9:30am CST
Thurs, Jan 23: EIA Weekly Crude Oil Inventories @ 10:00am CST
Fri, Jan 24: Weekly Rig Count @ 12:00pm CST