1. Oil settles lower and the dollar is up.
Oil prices settled lower today, pushed down by the strengthening dollar and increasing US crude output. But even with the slump, prices are still on track for the biggest January increase in five years.
Brent crude futures for March delivery dropped to $1.06 to $69.46 a barrel.
US West Texas Intermediate (WTI) crude futures dropped $0.58 to close at $65.56 a barrel.
The oil rally has been bolstered by the US dollar's six-week slide. We’ll see if this is just a hiccup, or if the trend continues. The US dollar is estimated to fall 3% this month. Oil is priced in US dollars, so a falling dollar can boost demand for crude from buyers using other currencies.
2. Tesla looking to invest in Chile as a way to stay ahead in the Lithium battle.
The Financial Times is reporting that Tesla may be interested in investing in a processing plant in Chile—one of the top-producing lithium countries in the world. Tesla is looking to ramp up production of its Model 3, which is way behind initial construction and delivery schedules.
Lithium prices have been increasing as demand for batteries continues to go through the roof, and nearly every legacy automaker has announced plans to roll out electric vehicles in the coming years. Tesla is under the gun to get their cars out fast and at an affordable price for the public!
3. Iraq plans to comply with OPEC cuts despite efforts to increase its oil export capacity.
Even though Iraq has been ramping up its oil export capacity, their Oil Minister Jabbar al-Luiebi said at a conference in London that they still plan to comply with the OPEC production cuts pact in which Iraq agreed to cut 210,000 bpd off its October 2016 level and cap production at 4.351 million bpd.