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Morning Market Scoop 4 December 2018


Morning Market Scoop 4 December 2018

In our morning market scoop:

  • Eskom back in the spotlight
  • Brent Crude Oil rose more than 4% in early morning trade on Monday

"No Light, No Light"


“Turn the lights back on”

What’s the scoop? Eskom and Load shedding

Just as we thought that load shedding was a thing of the past we get reminded once more of the repercussions of corruption as Eskom implements load shedding once more.

The big picture Eskom is in a pickle as it seems that the power utility did not do much over the last decade to assure the country would have power, instead it was a breeding ground for corruption. Eskom has warned that things might get worse before it gets better.

  • We are currently under stage 2 load shedding as a further shortage of power generation filters through. Mostly due to power plants not being maintained seems to be the latest response.

These are the load shedding stages: (To be implemented in two-hour blocks)

  • Stage 1 allows for up to 1000 MW of the national load to be shed.
  • Stage 2 allows for up to 2000 MW of the national load to be shed.
  • Stage 3 allows for up to 3000 MW of the national load to be shed.
  • Stage 4 allows for up to 4000 MW of the national load to be shed.

What does all this mean for me?

  • Much frustration is laying ahead for South Africans as we are very much dependant on electricity. We might even see an increase in fees from Eskom in the near future to keep the power utility afloat.

Brent crude

“Brent not Bent”

What’s the scoop? Oil prices on the rise

Just as news came through that South African motorists will finally get a reduction of R1.84 per litre of petrol the international Oil price comes back into focus.

  • Oil has been the topic of much discussion at the start of the trading day on Monday as the price of Oil is on the rise. The Price of Brent Crude Oil rose more than 4% in early morning trade on Monday.

The big picture The Oil price reacted positively after the G20 summit, as the tariff dispute between the U.S and China will be paused for 90 days. It was also reported that Qatar was withdrawing from the Organization of the Petroleum Exporting Countries (OPEC) which it has been a member of since 1961. It is reported that Qatar will be focussing their efforts on their Natural GAS production.

  • The week will be a big one for Brent Crude Oil as the OPEC countries will meet on the 6th of December in Vienna, Austria. It is also rumoured that a supply cut is on the cards for the meeting.

What does all this mean for me?

  • The consumer will save on Petrol over the festive season but that does not necessary pull through to goods and services over the same period. The Rand and the price of oil will be watched closely by motorists. A rise in the Oil price and a weaker Rand will have a negative impact on the petrol price.

#Trade Wars Tip

  • The Christmas rally only comes once a year, make the best of it!

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