PV UPDATE: Are we headed for a Soft Landing?

What is Debt Service Ratio (DSR) and why it matters? Why are oil exports falling? What is happening in the Chinese economy? What are the latest developments in Fracking industry? Our latest update answers all these questions!

1. On Debt Service Ratio, Falling oil exports, US Economy? – PREMIUM

The global economy is under a microscope as recent data reveals a landscape fraught with both resilience and potential pitfalls. Rapid increases in DSRs are a red flag, indicating that central banks’ rate hikes are significantly impacting the real economy. Turning to the global oil markets, Paula Munger provides a sobering analysis. June saw a decline in global crude and condensate seaborne exports, falling to 38.5 million barrels per day (mbd), the lowest since August 2023. In the U.S., the Leading Economic Index (LEI) from the Conference Board signals potential slowdowns. The LEI decreased by 0.2% in June to 101.1, indicating a possible deceleration in economic growth.

2. Nabors: Q2 Take Three – PREMIUM

Nabors Industries (NBR) recently added many rig awards across the Middle East and Latin America. It has scheduled 19 rig deployments over the next 18 months in international markets. T he company’s pricing remained stable in the US onshore, although the average rig count decreased in Q2. Read more to find out latest in the US fracking industry.

3. Market Sentiment Tracker: China’s Economy- glass half full, half empty – PREMIUM

The economic signals from the U.S. continue to be a mixed bag. June’s Existing Home Sales are forecasted to drop by 3.0% m/m, following May’s 0.7% decline, indicating ongoing challenges in the housing market. China’s economic performance presents a nuanced picture. The Q2 GDP growth slowed to 4.7%, down from Q1’s 5.3%, and retail sales missed expectations, rising only 2% versus the forecasted 3.3%. The Eurozone’s economic landscape is a blend of challenges and opportunities. On the bearish side, Germany’s industrial output declined by 2.5% m/m and 6.7% y/y, with industrial orders falling 1.6% in May.