Iran to Add 500k Barrels of Oil in November

Markets were mixed in trading today, with the Dow ending this session up while the NASDAQ and S&P 500 fell. The Dow added 113.28 points, climbing 0.70% to close out the day at 16,314.60. The NASDAQ plunged on biotech performance, which had the worst trading day in the past 3 years. The NASDAQ fell 47.98 points and closed out the trading day at 4,686.50. The S&P 500 fell less than 1 point, and closed the day at 1,931.34.

Nike (NKE) Outperforms Expectations

Shoemaker Nike (NKE) performed surprisingly well this quarter despite uncertainty overseas.
The company saw 4% growth in sales despite currency manipulation causing headwinds in their export performance. In trading today, Nike was up 9%. The company added over 10 points to its share price, and closed out the day’s trading at $124.96.

Boehner Resignation Raises Odds of Default

The announcement that Speaker of the House John Boehner would resign at the end of October could raise the risk of another default. The move is widely expected to lower the risk of a government shutdown, but unless the timing works out perfectly it could have the opposite effect on raising the debt ceiling.

In fact, the month of December could be a perfect storm, as the Fed meets the following week to discuss a raise in the prime interest rate. It’s perfectly possible that Congress could fail to act on raising the debt ceiling, and that could impact the Fed’s decision on whether or not to raise rates.

The reason that the odds of a debt-ceiling shutdown could climb are because of the inexperienced leadership which will be in charge in December. It remains to be seen who the next House Majority Leader will be, but it will be difficult to make up for Boehner's 25 years of experience at the helm.

Iran to Add 500k Barrels of Oil in November

In a statement today, the Iranian government said that they plan to add 500,000 barrels of crude to the market in November. After sanctions are lifted, which looks to be a foregone conclusion at this point, Iran will be free to sell their oil openly on the world market. Although their infrastructure isn’t up to par, the oil-rich nation could still flood the market in cheap crude.

We have been expecting Iranian crude to hit the market for awhile now, at least since it became apparent that sanctions would be lifted as opposition for the Iran deal would fall short. The move could send crude oil prices plummeting after this latest round of consolidation.
Published on Sep 25, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2020. Content published with author's permission.

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