Energy Overview — TotalView™ of the Energy Markets
Oil prices are significantly lower this morning, with WTI back under $30. The concerns over China remain elevated, and word of another fall in their foreign reserves over the weekend did not help.
WTI oil prices have steadied, shrugging off an incredibly bearish data set of outsized supplies of petroleum in US storage. It has been reported that a large $600 million oil bear fund was suddenly liquidated, which likely aided the snap back
WTI oil prices snapped back, yesterday, due to a steep sell-off in the US dollar and another round of alleged plans by Russia and OPEC to meet and come together on oil output policy. The former effect was real. Dollar-denominated commodities like oil cannot escape the pull of a major move in the dollar.… Read more
Oil prices return to selling mode, as hopes for a production are dashed. There is no agreement at-hand for a coordinated production cutback.
Another set of poor economic data out of China is set to rock the US markets and cause oil prices to resume their plunge.
The Bank of Japan launches a negative interest rate policy, and the markets are cheering, even oil, which will certainly benefit from more cheap money and central bank stimulus. The Asian currency war is on.
The Federal Reserve tried to reassure the markets that they are watching global developments and the impact of falling oil prices.
A rout in Asian stocks has failed to carry over, and even oil prices are rebounding from the sub-$30 level on increased, if you can believe it, glut fears.