Category: The Energy OverView

Despite low summer volume and a dearth of data, September WTI continues its march higher. An early buying spurt on an errant Twitter that Syria’s Assad was either dead or wounded lit a fire of concern about who was actually in charge in the strife-torn country.… Read more

Last week, the ECB’s Mario Draghi came out with a full-throated defense of and commitment to the euro, decrying the recent slide in the currency’s value by saying that the ECB would do everything necessary to preserve it. The markets took him at his word and rallied, and awaited yesterday’s ECB meeting as the logical place and time for substantive measures to be announced.… Read more

Hopes that the ECB meeting would produce a substantive monetary solution to Europe’s spreading debt crisis had reached so high, that there was discussion of a possible “road map” in the hours leading up to the post-meeting press conference. No wonder his ineffectual comments disappointed.… Read more

Prices for risk assets, including crude oil have been moving counter-intuitively for the past few sessions. Disappointing data, instead of weighing on prices were taken positively because they were interpreted as a harbinger of central bank action. But despite Mr. Draghi’s enthusiastic comments at the end of last week, and Chairman Bernanke’s implicit commitment to stimulative action, mid-session yesterday there seemed to be a sentiment shift.… Read more

September crude oil prices climbed to a new five day high in overnight action, but they trended lower throughout the US trading session, bringing an end to the four day winning streak with an 89.78 settlement. Apparently market participants were registering their disappointment that neither the ECB or the Federal Reserve will emerge from their respective meetings with anything close to resolution.… Read more

Market participants appear quite enthusiastic about policymakers’ affirmation of the single currency in Europe, expecting great strides will come out of the ECB meeting on Thursday. Asian stock markets surged overnight, carrying crude oil higher as well, on the assumption that positive demand may ensue following reports that the ECB will re-launch the SMP together with EFSF primary market purchases.… Read more

The much awaited U.S. GDP report was slightly better than expected, coming in at 1.5%. It was accompanied by several years of revisions, which basically revealed that 2009 was better than you thought and 2010 was worse. Take that to your therapist.… Read more

The strong reversal off today’s low, so far, has been driven by headlines, once again. This time however, it is not a threat from the Iranians; it is from none other than Mario Draghi shaking the euro pom-poms. Was he announcing a resolution to the euro-crisis?… Read more

Oil prices keep meandering in a precarious equilibrium, balancing concern for unrest in the oil producing regions against a growing European contagion. Slowing in China and mixed earnings reports has added to a marginally bearish cant. However, some activity amongst European policymakers and the stock market holding up has emboldened buyer today.… Read more

Market participants were quickly reminded on Friday that the EU sovereign debt problems have not changed and are here to stay until the EU leadership solves them once and for all; an outcome that does not appear to be forthcoming. Could be the beginning of the much feared domino effect, which ultimately leads to Spain having to join Greece, Portugal and Ireland in asking for an official rescue?… Read more