This morning in metals news, we have the latest rankings of promising renewables markets from EY, a continued decline in U.S. oil supply, and a weaker U.S. dollar.
The Renewables Race
China and India took the top spots on consultancy EY’s 2017 Renewable Energy Country Attractiveness Index (RECAI), edging past the United States, which had fallen from first to third place. The downward shift for the U.S. is largely due to the expected demise of the Clean Power Plan.
Since taking office in 2014, India’s prime minister Narendra Modi has been nothing but ambitious in his plans to reduce the country’s dependency on coal and ramp up renewable energy capacity. India’s current renewables capacity stands at 57 GW, and Modi’s plan is to reach 175 GW by 2022, including 100 GW of solar.
Trump Did Want a Weaker Dollar After All
It’s been a tremendously interesting week, to say the least, for anyone who follows American politics. Thanks to all the political hullabaloo in Washington (and that’s a supply that appears never to run short), the U.S. dollar has lost all of its post-election gains, Reuters reported, reaching its lowest level since early November. Industry analysts believe that the dollar’s downward trend may continue. Conversely, the euro has reached $1.1155, a six-month high.
Fittingly, Trump has before voiced desire for a weaker dollar, which would drive up demand for U.S. exports and lessen the trade deficit. As he told the Wall Street Journal last month, rather prophetically, “I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me.”
U.S. Oil Prices Reach 3-Week High, As Supply Drops
Supplies of U.S. crude oil are in their sixth consecutive week of decline, Reuters reported. According to the U.S. Energy Information Administration, domestic crude supplies fell by 1.8 million barrels last week.
“Traders and investors have grown increasingly concerned about a supply glut several months into the deal between the Organization of the Petroleum Exporting Countries and non-OPEC members like Russia to clip production by 1.8 million barrels per day,” Reuters reported. “Additional supply from other non-OPEC nations, like the United States, has offset the cuts.”