Categories
Crude, Crypto & Cash

The Day Most Never Thought They Would See…

Yesterday, the US Crude Oil (West Texas Intermediate) futures fell below $0 USD.

Yes, you read that correctly. The WTI oil futures lost over 100% of their value finishing at a record low of -$37.63 per barrel.

Strangely enough, at the same time, Russia’s Urals blend was trading at $24.55 per barrel and the June index for Brent Crude was settled at $25.57 per barrel.

One of the biggest issues for all oil producing nations isn’t the ability to extract, but storage.

With the record lows in demand at the moment, and the glut in supply, it’s hard to see the WTI futures rebounding in the next month or two…

My personal opinion is it will probably take at least 6 months for the markets to reach some sort of equilibrium; and this might very well be the death blow to the US Shale market.

Categories
Crude, Crypto & Cash

SA Budget 2018

VAT increase by 1% point to 15%

This is the first Value Added Tax increase since 1993.

Social Grants have been increased, to account for the increase in VAT.

Below inflation personal income tax increase

6-10% increase on Sin Taxes

April also sees the "Sugar" tax

Spending will be cut by R85-billion over three years

Free fees allocation of R57 billion

R6-billion to drought relief