Category: energy

Rising stockpiles of crude oil in the US combined with concerns about downside risks to the EU’s economic outlook expressed by ECB President Mario Draghi which exerted pressure on the single currency to the dollar’s benefit, and ultimately WTI prices. The larger picture, of course, is quite simple to comprehend.… Read more

The FOMC minutes are being given an outsize role in the reversion back down of oil prices by the 24 hour news maw; so let us parse them. At first glance it seems as though the central bank is moving away from QE3, which is positive for the dollar, and so a weight on prices.… Read more

Kilduff: Those Rumors Behind the Rally in Oil
Published: Friday, 23 Mar 2012 | 12:59 PM ET
Want to move the oil market these days? Fire off a headline about Iran, and, with the help of instant messaging, tweeting, blogging, and some old fashioning phone calling, you get a significant rally.… Read more

The current low mark after the recent high was posted last week at 102.13. That is where is should be headed. A deeper fall towards that mark should be seen initially this week. Interim support may give the bears some pause at 101.21 and bring rebound.… Read more

Participants have adjusted radar on fundamentals as a relative quiescence damps sentiment on Iran. As the bullish geopolitical sentiment moves to the background the market has moved its focus back toward fundamentals which do not feature any bullish price drivers at this point in time.… Read more

Another low-volume, narrow-range trading session passed yesterday, with little change in open interest. What this shows is that opposing directional advocates are not willing to strike into new territory with new positions. Recent surprising news flashes though show how little resolve both sides possess.… Read more

Zeus hurled a thunderbolt from Mt. Olympus yesterday, and the markets responded accordingly. Federal Reserve Chairman Bernanke’s announced that the U.S. economy needs to grow more quickly to bring the unemployment rate down further, reinforcing expectations that interest rates would remain exceptionally low.… Read more

Price action on Friday was the consequence of a news item that crossed wire that sanctions had already reduced Iranian exports by 300k/bpd. Prices had been under pressure just previous to the news reacted to a commerce Department report that new home sales fell 1.6% in February, the slowest pace since October and calling into question the strength of the struggling recovery in the US,

Here is an interesting factoid from yesterday’s data. As China’s economy grew over the last several years the PMI Index has been making lower highs and lower lows indicative of a down trend and suggesting it could go even lower; a bearish signal for oil demand growth.… Read more

WTI is starting to show some weariness after staying above $100.00 now for over a month. While this may or may nor be a consequence of the diminution of the Iran issue’s immediacy what is painfully evident is the slowing Chinese economy.… Read more