low oil prices mean that there is less oil production. there's certainly been a decline in oil field jobs in the united states since the decline in oil. it leads to lower gasoline prices which has the unfortunate effect of inducing people to buy larger cars and to drive more. - [narrator] at the geopolitical level, increased american production makes the us less reliant on imports. - [colgan] some people talk about energy independence, and that's a goal that doesn't necessarily make sense for the united states because it actually helps us to be globally integrated into oil markets. - the bill i sign today takes a significant step. it will help us diversify our energy supplies and reduce our dependence on oil. - [mcnally] when i was working in the white house and we would have to read the president's speeches for president bush; george w. bush; and i would read, in a speech where he would call for energy independence and getting off of oil, which has been enormously popular since president nixon said it; i would always cross it out and say

the gleam ofof oil. in the sky, the power of oil conquering the heights. onon the sea,a, the might of petroleum, pulsing in great engigines of the liners that traverse the deep. on land, o oil feeds the fiery furnace or drives the diesel engines along far-flung rails of steel. and on the open road, well, you know what makes your auto run. for millions of years, this source e of power slept peacefuy iin the dark recesses s of the earth until modern magic loosed the liquid energy from its subterranean prison. >> the quest for oil was not only confined to land. it extended offshore. there are oil reserves under the coastal waters of the united states, mainly off the coasts of california, alaska, texas, and louisiana. the gulf of mexico, home to a rich diversity of marine life, and it also produces almost a quarter of america's oil. tapping these offshore oil reserves helps meet a significant part of u.s. energy needs. but when things go wrong, there's a high price to pay. in 1969, the santa barbara oil spill dumped two and a half million gallons of oil into t

years from now, 600,$000 per day with increasing oil production and oil markets, a us crude oil export with important role even though -- compared to natural gas, it is significant and important contribution but in terms of size, good quality. >> when you think about where we had been historically with world conflict that comes about because of virtual advantage some nations have when it comes to energy resource, whether it is the middle east, other parts of the world, you have given us a new view of where we are going with ergy and energy worldwide, all that is coming with regards to renewable, this means countries that might not have fossil fuels at their disposal have other ways that they too can achieve their own level of energy production. when we about the potential hotspots for conflict that come about over energy, we had presentations in this committee in the years i have served on the committee and always seems to have been focused around who has the capacity when it comes to those sources of fossil fuels. do you see this changing now that the broader world energy portfolio is

oil export ban. because we look after the global energy security, a very positive contribution to global energy security. so it came in 2016 was a year where the u.s. oil industry had a difficult year because of the low prices, low oil prices. therefore that year we have seen the exports were just under 600,000 barrels per day. 2017, last year, we saw an increase in the exports. it was about 1 million barrels per day most of the time. but certain weeks it's ramped to 2 million barrels per day, a significant contribution. the important area here is that the -- not only the size, but the quality of the oil is very important that you are exporting. it is a light and sweet quality, which is very much in demand, and therefore it can be used in many countries, again one of the major buyers is china here today. so looking at the years from now, 600,000, 1 million barrels per day in 2017, with the increasing u.s. oil production and the increasing global oil markets, we expect a u.s. crude oil exports will pl

rigs targeting crude oil.dfly article where bloomberg's julian lee writes, anybody expecting the opec, non-opec deal to fall apart says -- you are likely to be wrong. "they have their act together" is the point he makes. where do you see oil going in 2018, and what is the key upside or downside risk? has the rally gone too far? we are in territory. who would have made those calls four weeks ago, eight weeks ago? nabil: many were expecting oil to stablize in the range of $60's. again, the most important thing for oil is to stabilize somewhere, to forecast the regional budgets. because if it keeps going volatile, up and down, you will have a problem with a deficit. and it will affect the bond market again. if oil stabilizes, which i think it will stabilize, whatever opec and non-opec do is one thing. but it is a supply and demand. if you cut the supplies, you are selling less. it's not like you are making more money, you are just making your product more valuable. but you are not cashing it in. yousef: should i

a look at where oil was six months ago.er mechanics of the saudi aramco ipo, which could be the biggest ipo in recent history, there are questions that remain around where they will list. how do you see this playing out? obviously, it is difficult to tell at this point. will it be a list be a local listing, listing in new york, london, what is your impression? tim: i think the attempts to encourage in cities and conjecture about local and even maybe in asia as well. i think there is a lot to be decided. i think clarity about that is one of the big issues. we don't really have a firm handle on where it will be listed at this stage. yousef: it is a lot to digest. there have been more reforms in saudi arabia than probably recent history combined. the latest one being women allowed to go and watch football matches, we have had women being allowed to drive in the summer of 2018. that is the expected date. you have got ongoing reforms domestically in terms of the capital markets, the latest budget announcement. tie it together fo

are therefore oil and gas.e are working many years and especially for natural gas with the g7 meeting in japan we asked the par minister to look at the security issue and i matched to you with cyber security and we are working on that. yet another security issue indirectly but also in terms of the [inaudible] this goes from lithium and it happens that the issue of the sources several years ago this is the number of countries and again here we have resources and some of and latina america and other chile, peru, but china happens to be the country with a lot of reserves in that context. when we talk about the clean energy technologies this is very good and it's good for the environment and domestic production but one has to go one step further to think about that where it will come from and what kind of security we can develop in order to address some of the problems as those technologies are in a few number of countries. important. >> is iea not concentrate necessarily but do you factor in the vulnerabilities as

support the oil price.t would the good for the high-yielding bonds, but not good for the lower or higher grade bonds, i.e. abu dhabi. you have seen the outperformance of oman and bahrain and the nderperformance of abu dhabi bonds in 2017. by and large on the volatility, you have seen outperformance by regional bonds than international emerging markets. yousef: we have seen the story of oman strong in 2018 with the issuance. do you expect other sovereigns to follow with that kind of enthusiasm? is this a good time to issue with oil where it is and other variables? >> i do think it is a good time. oman has significant funding for 2018. they came out and had the demand and took $6.5 billion out of the market. that has performed very well in the secondary market. what they have done is they have funded themselves for 2018. investors know the will be limited issuance from oman in 2018. we have other sovereigns lining up. saudi mentioning $20 billion here it abu dhabi funding in the first quarter. qatar sending o

spill was cause by a oil company. >> my neighbor said he saw an oil company, pump oil into my house. he saw the guy pumping oil and then he glanced at my porch and noticed he was at wrong house, ran to cut it off and left. >> reporter: parker does in the use oil, her heat has a old line that is sawed off. so when driver with oil depot realized his mistake it was too late. oil had flowed into the home, sawed off style in the walls of parker's basement. you can see in the photo of her discolored carpet oiled seemed in the flooring. >> environmental company came and ripped up carpet, there is oil in the concrete. i have to get tested for oil in the foundation of the house >> reporter: despite all that it will cost to repair damage to her home the fact that she may not be able to live here for another month, she at lee hopes her experience is a lesson to all home owner with old oil lines. >> if you used to have oil in the past if is there a pipe still on the side have our house make sure it is capped and cemented all the way through. >> reporter: we're able to speak on the phone with rep

oil prices are trading at a three year high due to concerns that iran's oil supply could be limited by the unrest there analysts say iranian output of over two million barrels a day is not presently under threat that the political protests are adding to one certainty in the market the up to comes as oil cartel opec extends production caps in an effort to tighten the market. and let's bring in an advice by financial correspondent in frankfurt on this and how much it is iran playing in this price development for oil at the moment. well of course it does play a role because as one analyst is putting it geopolitical risk was almost absent during the whole course of last year and it's back on the agenda analysts are saying nobody knows how the situation in iran will unfold but one thing is clear that iran is the third biggest opec oil producer so it plays a role in the oil market and in case the production. process could be whole to disturb that would increase prices of course but there are also other reasons why the oil price actually on the rise and it's a the underlying trend that the mo

now, in the oil sector still, china is edging closer to opening a domestic market to trade oil futureswhich means chinese buyers will be able to lock in oil prices and pay in local currency. foreign traders will also be allowed to invest — a first for chinese commodity markets. oil prices saw a fair bit of volatility last year — this is the benchmark of crude last year and earlier i spoke with an energy expert, john year and earlier i spoke with an energy expert, john driscoll, year and earlier i spoke with an energy expert, john driscoll, about the outlook for oil, and he said he is sceptical about chinese plans for an oilfutures is sceptical about chinese plans for an oil futures market. this time there appears to be more conviction but the real question is are if a chinese energy futures contract can ascend to the same kind of level as the cme in the states, or the intercontinental futures exchange in london, which are the main benchmark futures exchanges for crude oil and products globally. it has to also gain acceptance from the industry at large. you can look at some commodity co

we have low oil prices.but are not as high as they used to be. >> the first thing for the residential market is what happened over the last year. what happened in 2017, the first nine months of the year, was that it was a relatively stable on the back of expectations that there is going to be a recovery. that thater our view would happen, but the cap prices stable, when they needed to come down more. we have seen that happen this year, prices at 3.8% in the last quarter of the year for apartments. what we need to see is that continue for 2018. we need to see prices continue to soften in the next year. tracy: he sing pressure in the office? >> certainly. --tracy: are you seeing pressure in the office? >> certainly. there are internationala grade -- international a grade assets, stable over the last year. tracy: no one looking to retreat? >> no. it's about absorption, the overhang, the stress supply that has existed since 2008. i thought it was interesting going through your 2017 report. you said retail will l

oil. w.t. i is back at sixty two and that is somehow the threshold for the fracking industry does the big frack luck with how it is called so it's a fracking backlog that's already trailed but not activated feels that could come into production in a few weeks and that could then by itself. like dampen the oil ready that we've seen in the past weeks all prices on the rise young stanzel chief market analyst at c.m.c. markets thank you for your insight the international labor organization says there have been improvements in recent years regarding child labor nevertheless more than one hundred fifty million children around the world are still forced to work often instead of going to school you know so going to work means food on their plate and the roof over their head at least in the short term. these children are making t. shirts that will be sold across the world and some by gang given fourteen the legal age for employment in bangladesh muhammad is one of them is just thirteen is working in thi

oil spill. what happened was deep below the sea bed, miles further into the earth's crust, pressure had built up, and an explosion had occurred. the safety mechanism is right where the pipe comes out of the sea bed, and that pipe then goes up five miles to the surface to deliver oil. the safety mechanism is a blowout preventer which is like a huge set of pinsers -- pincers that comes through and cuts off the pipe. if that blowout preventer, in other words preventing the blowout of the well, if it is defective like it was in the b.p. oil spill, five million barrels of oil spewed out five miles below the surface of the gulf into the waters of the gulf of mexico, and rendered the havoc and economic damage that it did. so in the turmoil and trauma that ensued, there was obviously a need in the department of interior in the bureau of safety , it's called bsee, to go in and change the rules to give additional safety mechanisms to make sure that this wouldn't happen again. well, lo and behold, there is

true once we switch to an oil-based military. - 15% of our oil imports still come from saudi arabia. and saudi arabia is the key country that sets the internatiol hyocarbon's pricfor l thworld thugh it's petroleum production. it produces 10 1/2 million barrels a day. it has 259 billion barrels of oil. - [narrator] the alliance was further cemented during the cold war. in the 1960's, washington launched the twin pillars policy arming both saudi arabia and iran against the threat of communism. - a kingdom along with the united states and other friends in the area joined together to try to challenge this expansion of communist influence. - the pillars of americans grand strategy in the middle east were to have this powerful allies who could basically do our job for us and maintain security, keep the soviets out, help to prop up friendly regimes. when the irani revolution happened in 1979, it completely undermined american grant strategy in the region. - air gulf states got together and formed the gulf cooperation council. in large part, because of the concern about the iranian islamic r

production and also the old exports from iran if iran is the second biggest oil producer among those opec members so it's a huge force in the market in if bad force might actually be disturbed that has will have an immediate impact on the oil market but for now prentiss up by well it's a flight of bed to stand right now trading somewhere about sixty eight dollars a barrel in levels not seen as you were saying early on since three years the main drivers are iran but also the cold weather in the states and overall all general better demand can you give us a bit of an idea of the twenty eighteen outlook for the oil price people you've spoken to. here it's very interesting how the mood actually swings very rapidly on the commodity markets before everybody was talking about huge inventor is when it comes to oil and now people are sort of afraid that there could be supply constraints because inventor is going down and that also might build well for two thousand and eighteen the oil price many analysts are expecting that the oil price will keep on going are also now during the first quarter

oil gaining, highest close.omberg. ♪ guy: good morning. 30 minutes into the trading day, let's talk about the headlines. asia stocks pushing for his new record highs. the s&p clearing 2700. europe joining the rally this morning. the chips are down. intel and microsoft with a security gap that could affect billions of devices to which companies could get caught up in this story. stuck in traffic. tesla breaks another production promise. will elon musk be back to investors for more cash? good morning. welcome. you are watching "bloomberg markets: european open." i am guy johnson of bloomberg's new european headquarters. talking of elon musk, what's happening in europe this morning? the car data out of the u.s. yesterday, particularly for luxury manufacturers, was a strong. we are seeing that price in this morning. the stoxx 600 auto and parts sector leading the charge markets up by .6%. we have got the auto parts sector trading up by 1.49% this morning, doing very well. construction up in the trading strongly. ind

especially because they have fostered at the fracking or oil exploration we have an hour for oil on the international market so it's more a political decision really to increase also the offshore drilling which is a high risk a technology that just how high the risky is it. just we've seen pictures of the environmental disaster that was caused during the deepwater horizon incident back in two thousand and ten is there a chance of that happening again considering we're talking about almost all u.s. coast lines that could be drilled. yeah it's a high risk technology especially because if it's very close to the coals and we have seen these accidents and this causes a lot of damages to the environment to the sea and also to fish and birds and this risk is very high especially if they allow it everywhere almost everywhere and we have environmental protection areas which are very vulnerable and it's not really desirable to go in that is tell me is the business worth the when oil prices. so low and the cleanup costs of such disasters is so high. now the business is not worth it at this tim

oil's charged into the new year with unprecedented vigor.sts say the credit goes to opec and compelling finds that the cartel is winning its tug-of-war with shale. here is our middle is energy market reporter, anthony dipaola. >> this story has always been a supply story. the supply was too high and that is what pushed the price down. opec and friends cut back on that supply to bring the price back up. what we will see this year is that supply story continuing. it will depend on whether shale producers in the u.s. take advantage of that optimism, lock in hedge camelot and pump up the drilling. any analysts we have spoken to -- analyst we have spoken to has shown cheating by opec or non-opec members as they see the price coming up, an incentive to produce more becomes even greater. will more oil leak into the market and will that compliance level suffer a little bit. it is going to be a supply story going forward. shale point, if you are trying to watch the market and gauge whether or not shale is wrapping up its production, what indicators a

crude put the shale oil production that is also can also consistent rise with the higher oil price so certainly we do not see too much of an upside i think it's more of a consolidation from here what was the bottom line for consumers and we're going to see i don't know transports flight goods and services all of those kinds of things go up now i think these higher oil prices will of course will feed into an inflation and that would have an impact on our daily life i mean over in the u.k. we have already seen that in a number of different factors but of course the currencies is an obvious factor as well but through it looking at from a global perspective yes higher oil prices have already started to feed into different parts of the equation in our daily lives so you mentioned opec strategy a second ago is going to backfire on oprah if they continue making these cancer in the sense that it will encourage more shale production in the u.s. i think what would happen perhaps the compliance part of the equation was started come down from a pack because certainly for so far we have seen a rea

let's go back to the rise in oil price.cing markets is the extent -- let's bring in the vice president for energy at ihs markets. great to have you with us. i want to throw up a screenshot. the latest drawdown. that was the largest for this time of year since 2014. opec isof shows that getting close to its goal in terms of where it wants u.s. inventories to be. kind of hovering around above that five-year average for about three years so we are coming back close to the five-year average. what happens once this level is achieved? do we see potentially u.s. shale getting back in the game when prices are high? victor: right. global inventories, if you look oilder beyond just u.s., inventories have been coming down and they are still above the five-year average at this time. that's one of the factors as to why we are seeing this tearing oil prices over the last few weeks. prizes --s that these 's, thef we go to 1970 markets unleashing strong u.s. share oil production growth. beenoil production has soaring. if we look at oil cou

oil prices are at a three-year high. opec output cuts have succeeded in reducing stockpiles but another surge of u.s. oil could neutralize the cuts. plans toal reserve ease on bank leverage. according to people familiar with the matter, the fed is to relax a part of post crisis demand for drastically increased capital levels at the biggest banks. the effort is excited to be opposed by the fdic, which has authority over banking roles. the trump administration is running out of patience with nasa talked -- nafta talks. the u.s. is serious about a threat to pull out of negotiation if there is no progress on proposals intended to rebalance trade. talks resume tuesday in montreal. new zealand's prime minister says she is not the first woman to multitask. the countries in this leader ever has announced she is pregnant and expecting her first child in june. she plans on taking a six weeks maternity leave. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am taylor riggs

the interest in stable oil prices to sustain reasonable investment levels in oil and commodity sectorl, otherwise you will have another oil crisis. >> is it fair to say you would like to see the cuts continue through maybe 2019? markets,l monitor the it wasn't of the end of 2018 -- was until the end of 2018. if you look at how the market develops, most supply and demand side and we will decide that when the time comes. >> the u.s. is thinking about sanctions to target russian oligarchs, what is the sense in the country among the elites? >> we do not think we have oligarchs. good working businessman, responsible and who care about the country and earn money by doing responsible business. --ctions it more difficult but does not make life impossible. we are working hard to reach growth in russia. with partnership with foreign that do not take capital out of russia. this is what responsible means. >> relations with the u.s. and russia are chile this fight efforts by president trump to warm it up. is this year, will ration -- relations improve? >> we are open to the dialogue. it will be ba

for oil off the coast of california.. lawmaker vowing to fight back after trump moves to drastically expand offshore drilling.>>> it is the most expensive offshore drilling proposal in decades. it calls for opening federal waters along the coast of california for the first time in 30 years.>> trumps new five- year plan would open oil and gas exploration here on the west coast and along the east coast. the arguments for and against the proposal.>> reporter: the oil industry supports the plan are doing it would create more jobs. the reaction in california has been against new drilling leases along the coast.>> reporter: when a ruptured oil pipeline sent 21,000 gallons of oil into the waters of the santa barbara coast two years ago a reminder of what happened five decades prior. 3 million gallons of oil spilled from a platform in the channel. that disaster the largest oil spill in state history is credited with inciting the modern environmental movement in california.>> the risk of more drilling means the risk of more oil sp

weak dollar has been good for crude oil. so check out this dollar, this daily chart of an oil versus the dollar index futures which measures the greenbacks against the dollar currency. as the dollar plummets, oil has been surging but gardener notes the pendulum swings both ways where it should be able to find a floor of support the other thing is the correlation is strong it at the moment the dollar index and crude is settled opposite direction roughly 90% of the time. over the previous six months the correlation is 50% kind of like 50% we have gone to extreme levels if the dollar bounces oil should go down according to this comparison even though the greenback has been making lower low. gardner notes that it is finding support as it approaches 90. that is why she thinks it has a chance of reversing course sooner rather than later how about the weekly chart of the crude oil itself gardner things there is little reason to be bullish here. crude seems to be on the brink of a break out but gardner says it is an exception rather

oil companies if you increase the supply.nk in the long term if there is more production it's the oil consumption that will be needed anyway. i think what it leads to is america buying less foreign oil. two domestic jobs and our national security. let me push back on you. i'm not so sure and here's why. it is fantastic that we don't depend on arab oil anymore. i love that. i don't want it depend on countries that hate us like hit us like iran. that's a good thing. when you add that much supply the price normally goes down and unless every 101 professor on this planet earth is wrong you will see a price drop. and that what the what follows might be bankruptcies on that. if the industry keeps doing this that they may douse the big bull run in prices. i think there is a lot of truth to that also. i think that in the long-term if we provide more drilling opportunities in the u.s. the oil industry will find an efficient way to do that in a way to do it a profitable way that produces returns for shareholders. otherwise they won't g

today, oil price is about $70.he global oil demand will billion --out 1.4 1.4 million barrels a day. a lot of new oil production is coming from the united states, from brazil, from africa, from canada. a lot of oil in the market. >> i think that's the point of socussion, because the focus far has been in the supply side. we often don't discuss the demand side of the equation, and maybe we need to do some more work them up because all reports suggest that 2018 there will be growth on the gdp worldwide. demand,l trigger better and i think we have a responsibility to meet that demand. think this discussion needs to look at both sides. sideten discuss the supply , as if shale oil is an unlimited resource. they have limitation as well, like the rest of us, although i don't know what that limit is. i have a suspicion. we heard from a speaker here, saying soon shale oil is going to have a peak production that everybody talks about. there is a peak production, even from shale oil producers. with edlet's get more from citig

other factor is oil prices have gone up a lot.kevens are about headline cpi, not core c.p.a.. they have to incorporate some degree of the fact that oil, as a shock to the system, has gone up and does not have any signs of coming down anytime soon. with your fixed income hat on, walk us through the action we saw in the bond market yesterday. kind of muted, i thought. i do not think the fed really gave us anything that was particularly surprising. they are grinding their way toward what is now pretty well priced in the markets. there was not a whole lot for markets to react to. tracy: coming up on the best of bloomberg markets, middle east, the feds tightening dance could take the shine off gold. our next guest remains bullish. find out why just ahead. this is bloomberg. ♪ anchor: welcome back to "the best of bloomberg markets, middle east." we started the year on a high, but the latest fed minutes have taken the shine of gold. metalsprecious consultancy founder tells us he's remaining bullish. >> it is overdone. certainly a 7% rall

is counting the cost on al-jazeera the weekly look at the world of business and economics this week oil hits its highest level since two thousand and fourteen we look at what's behind the rise of black gold. also this week anger over all stare it's a redesign in the economic reasons for the protests in tunisia. and it's all about china for a man who micron has been pushing for greater access for french companies. oil has hit seventy dollars a barrel for the first time since two thousand and fourteen brant crude jumped after opec said it would continue to limit supplies the organization of course accounts for forty percent of the world's output or joining me from london is name as landon is the chief market analyst with london based think markets good to have you with us so what's driving prices up. there are three major factors number one supplier cut we all know that number two stay billet in the demand but here is the most important one which is the here in rest is not underestimate the importance of. i.p.o. because the entire reason saudi arabia is behind the price stability is mainl

oil.ing its output for crude production in a second month. in the meantime let's bloomberg's power in renewables reporter is tracking all of this action. opec's outlook for the u.s. seems to contradict anbloomber'a report. who is right? >> hi, thanks for having me. that is an interesting question. you would think a massive stockpile draw -- we are talking 4 million barrels completely wiped out -- would be super bullish for the market. on a day like this where you had that opec report, it's just a downhill ride for oil prices. it's not very contradictory. the eia report, while it showed a big stockpile draw, showed last week there was a huge rebound in u.s. oil production. it corroborates this idea that u.s. oil production is headed upwards. the market reaction to that is, let's not get excited. you saw the oil market drop but a few pennies. you will continue to see this muted reaction until there is more certainty over where oil production in the u.s. is headed. betty: this tells you they

thirty two people missing after a freighter collides with an oil tanker in the east china sea. no this is al jazeera live from doha. also ahead at least seventeen people were killed by government airstrikes in syria's eastern ghouta area. arm come on the high rally in the wall where anger it growing over the issue of the ballot diner encouraged me and from street to tweet. and the status of refugees could become a key issue in coalition talks in germany. first chinese and south korean teams as searching for thirty two same is missing after an oil tanker they were in collided with a freight ship in the east china sea the tanker operated by iran's top oil shipping company caught fire after the collision it was carrying one hundred thirty six tons of crude let's get the latest from our correspondent in beijing rob mcbride rob what more do we know about what happened. that's right the concern at this hour is very much for the crew members who are missing as you said this isn't a rainy and oil tanker and most of the crew are a rainy and some thirty to be exact with two bangladeshis

platform explosion claimed the lives of eleven oil workers and devastated the gulf coast. energy analyst is with us how do you good to see you again are you just excited about the move as the american energy industry is. well the u.s. wants to become a global leader on oil production that's for sure that they do this for many years now especially because they have fostered at the fracking or oil exploration we have an hour for it on the international market so it's more political decision ready to increase also the offshore drilling which is high risk the technology just how high the risky is it. just we've seen pictures of the environmental disaster that was caused during the deepwater horizon incident back in two thousand and ten is there a chance of that happening again considering we're talking about almost all u.s. coast lines that could be drilled yeah it's a high risk technology especially because if it's very close to the coast and we have seen these accidents and this causes a lot of damages to the environment to the sea and also to fish and birds and this risk is

major oil spills from tankers are becoming less common. was the sinking of the prestige off the coast of spain in 2002. more than 60,000 tons of oil came ashore over a long stretch of coastline. specialist clean—up vessels have been sent to the scene of the tanker fire. chinese authorities have confirmed there is an oil slick but they can't confirm at this stage how big it is. andy moore, bbc news. the bbc‘s robin brant is in shanghai. he told me more about the rescue operation. we have a rescue operation under way with numerous vessels and aircraft being co—ordinated by the chinese ministry of transport. there are also south korean planes involved and also an american plane. essentially, there are two sides to this operation. one is search and rescue. unfortunately, it's now 38 hours since the collision happened late on saturday night here. the news is increasingly grim for those 32 crew members of sanchi who remain missing. the vessel, sanchi — as andy moore referred to — remains afloat, but it remains burning 165 nautical miles off the

the sanchi had left port in the persian gulf, bringing 136 thousand tons of oil east. china sea to south korea when the collision happened. robin brant reports from shanghai. since saturday night, the fire has burned. dark black smoke feeding off the cargo of almost a million barrels of oil inside the sanchi. the intense heat and the threat of an explosion is hampering an already difficult search and rescue operation. it's not clear at this stage how these two huge vessels collided. the cf crystal, carrying grain, was damaged at its bow, but all on board were rescued. translation: the chinese government takes maritime accidents like this very seriously and has already despatched many search and rescue teams to the scene. shanghai's port is the busiest in the world and the coastal waters to the east of this city are vast. but in the last decade china has had eight reported collisions similar to this involving foreign ships. the chinese authorities are leading the search and rescue effort but there is help from south korea and the united states. the focus, though, is inc

where are we on oil? -- let's bring in our guest host this morning. where are we on oil?in oil markets? eric: there are two important considerations. the big picture is the revolution in u.s. shale. whether that changes but eventually the shape of the supply curve. if you think oil price volatility is a function, any shift in demand causes a dramatic shift in price. as that supply curve flattened, in other words, can oil be supplied on-demand? that is being tested at the moment. what i would say is that everybody is on top of the microanalysis. there is a consensus that the oil prices elevated currently and likely to come down. we forget what we do a microanalysis that it is a cyclical commodity price. at the margin were people will be surprised is by demand. i think the surprise to the market would be higher oil price. anna: because of global synchronized growth. eric: absolutely. will: we are going to miss the fact that the global economy is stronger, which drives demand. at the margin, people will be surprised that the demand outlook. give us a bandwidth. invest isway

unlimited oil drilling. the end of net neutrality, a crackdown on states that have legalized marijuana whether it's medical marijuana or recreational, when really we should be respecting federalively and using the states as laboratories of change. i do think it's productive to talk about the issues, though, whether the trump administration is helps the economy. are wages rising? are they rising enough? what can be done to help the working folks more? that's where the discussion needs to go. steve: we'll get to that later, on the points you mentioned, look, those are real serious policy issues that the administration is advancing. you may not agree with them, but give a light to the idea this is total chaos with a madman in control doing things. you don't like them but they're doing real things. >> i'd rather talk about the issues than the personality of the president. [laughter] >> what's the read for you? >> it's a good week for books. this is not the first book that has lit d.c. and the chattering class an

guy's point that the rig count is rising, that shale guys are starting to bruce oil -- -- produce oiles opec need to worry about this and what can they do about it? and russia will have a concern that they don't overheat the oil market. i don't think many people in opec want prices to go toward $80 a barrel. that is probably too much, but it is worth remembering that for all the supply coming out of the u.s., there are other places where supply is constrained. venezuela, we have seen false and production and they can even put oil backed into the market if they wanted to if opec headed up its deal. there are places where a lack of investment means that the oil that has come out of the market because of natural decline and it is in being replaced. thinks ironarclays ore will collapse. there are a lot of infantry's at chinese ports right now. closed a lot of factories over the winter to clean up the environment and his argument is they will open some of those steel mills in the spring, which will mean the profitability we have seen in the chinese steel industry will collapse and it will

trump: i am for massive oil and gas and everything else and a lot of energy. putin can't love that, and hillary, my appointed, was for windmills. amy: president trump tells also feels as is a administration opens more than one billion acres of water in the arctic, pacific, and gulf of mexico to offshore oil and trolling. but there is one exception, the state of florida. the home of trump's mar-a-lago resort and his political ally republican governor rick scott. then we look at the death of anti-police activist erica garner, who died at the age of 27 four month after giving birth to her second child. attributed her failing health to the trauma of racial injustice. racism kills. amy: we will look at a remarkable investigation by propublica on how hospitals are failing black mothers. bottom line is in the united states we have some of the highest rates of maternal death in the industrialized world. this is driven by the high rate of black mothers. like mothers are three to four times more likely to die in childbirth, and this is something we should all be talking

the one downward pressure potentially is for oil. as much as there is demand there for it and refined products, there is a ton of supply. you don't have that with the other commodities. >> true. john, thank you. >> thank you. >> thanks for the bad news, john. >>> still ahead, lawmakers have a long to-do list and not >>> republican senator orrin hatch plans to retire. hatch is the longest serving gop senator and head of the finance committee, which of course played a key role in writing the tax bill that passed last year. the 83-year-old will retire at the end of year, bringing a decades-long congressional to an end. and it could potenti pave the way for mitt romney to run for the seat. romney has not made any definitive statement about his plan. >>> it may be a new year, but when lawmakers return to capitol hill tomorrow, they'll start tackling the budget. congress approved a measure to fund the government last year, but just through january 19th. a number of thorny issues will likely be linked to this battle. john harwood follows th