Interpreting Middle East Economic News and Analyzing Market Trends

Category: Commentary & Analysis

China is hooked on Mideast oil, which helps build a good case for a Petroyaun

China Oil Transit Routes 2013Source: Zerohedge (click on map to view larger size)

Last year China became the world’s largest oil importer, surpassing the U.S. for the first time.  The U.S. reliance on imported oil has been declining ever since shale oil production began to rise in 2008.  We remain skeptical on the long-term viability of U.S. shale production, but that’s a different story.  You can see our posts on the subject here and here.  Going back to China, what does this mean for Middle East exporters?

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Can the Dubai Financial Market maintain its momentum after rising over 100% in 2013?

MENA 2013 Performance

Source: Global Investment House, market performance to 31 Dec. 2013.

  

In case you haven’t noticed, the Dubai Financial Market (DFM) was the best performing market in the MENA region in 2013 and one of the best performing markets in the world.  The best performing market in the world was the Caracas Stock Exchange, which gained a mind-boggling 452% in 2013.  Needless to say, the DFM is back in business after lack-luster performance since the financial crisis.  Can this momentum continue into 2014?

 

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Happy (belated) New Year!

Cartoon Happy New Year 2014

Cartoon:  www.cagle.com

Is the Fed losing control of the market?

QE3 - 2012 to 2013

Chart Source: Yahoo!

 

The saying goes ‘never bet against the Fed.’  The U.S. Federal Reserve’s nearly endless resources deter even the most seasoned investors from going against it.  What the Fed wants, the Fed gets… or so we are to believe…

    

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Shell CEO calls shale revolution ‘hype’ and writes off $2.1 billion as shale ‘revolution’ spreads to North Africa

Global Shale Gas 2012

Source: Reuters

If one of the world’s largest energy producers considers exiting a business and calls it ‘hype,’ we should consider looking into the reasons.  Some would argue that Shell got into the US shale business late, thus overpaying for assets.  We reported earlier on the shale revolution here and explained why it’s hyped up, mainly from Wall Street firms looking to cash-in on a trend.

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