Oil prices are under some pressure this morning, after starting out higher, out of the gate, last evening. The initial rally came courtesy of a move by the Chinese central bank to lower bank reserve rates by a full percentage point. That sort of news cuts both ways in the oil market. Obviously, the stimulus should mean more, not less, oil consumption on an uptick in activity. On the other hand, the move by the PBOC is acknowledgement that things are not rosy in the Chinese economy, and that something needed to be done. That means less, not more, oil consumption.
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