Category: The Energy OverView

According to a draft communique prepared for the G-20 summit, Europe would take, “all necessary policy measures” to resolve its crisis. Hollow words that have been heard before, and a “grand bargain” remains elusive. Similarly, talks in Moscow between the West and their Iranian antagonists over the latter’s nuclear program appear no closer to resolution either.… Read more

The sum and substance of yesterday’s Greek elections is exactly nothing, as the markets’ quick rejection clearly shows. The first announcements from Athens set off a gap higher opening last night, but the surrender of positive territory began in the first hour of trading in last night’s Asian session.… Read more

WTI keeps covering the same ground with a slightly upward cant, suggesting that participants are establishing defenses, awaiting the outcome of the Greek elections on Sunday. The sum and substance of it all is how will the outcome drive aggregate demand.… Read more

Participants in all financial markets will be chewing their nails to the quick, waiting for the other shoe to drop; or not. What will the Greek electorate do? This appears to be the most pressing issue for what it implies for the future of the EU as a whole.… Read more

Crude oil traded in a range yesterday that made it look like the Spanish bailout did not even occur. At this point it is extremely uncertain what it will take for the EU to regain the market’s confidence that it can control events.… Read more

Yesterday was a classic. A gap higher opening on important news, then a new low for the two-month move down from 110.00. The statement was clear. Market participants emphatically rejected the Spanish bank deal, engineered over the weekend. And why not?… Read more

July crude oil traded in negative territory throughout Friday’s session but managed to recoup a large portion of its early deficit by the close. Early weakness in the market appeared to come from uncertainty surrounding the European debt situation and ideas that crude oil supplies could be running ahead of demand.… Read more

Chairman Bernanke’s wet blanket testimony yesterday, led market participants who were harboring hopes of steadying demand in an about face across most asset classes. The festering crisis in Europe has gloom over the markets as well as officialdom looks no closer to resolution.… Read more

Ho-ray for China. Crude oil prices were pressing session lows coming out of the European session when the Chinese central bank announced a cut to 1-year lending rates of 25 basis points. Within seconds the market reversed to new highs. This move has apparently allayed participants’ fears of crumbling of global energy demand consequent to the EU’s conundrum.… Read more

The latest commentary from crisis conferees implies that there is movement towards greater integration. Some cynics have even suggested that the crisis was precipitated to bring this about. However, a healthy skepticism should be exercised. There is no guarantee that fiscal and monetary policymakers’ constituencies will find this acceptable.… Read more