Energy OverView January 29, 2015

WTI oil prices made another new low for the move, yesterday. Prices reacted negatively to the FOMC statement, which was fairly hawkish and caused the dollar to renew its rally, pushing down dollar denominated commodity prices. The hawkish statement also works against hopes for greater energy demand, if the Fed is seen in a tightening mode, while the rest of the world scrambles to attach the monetary jumper cables to their economies in Europe, Japan, and even China. The Fed seemed to ignore the rise in the value of the dollar, and its de facto tightening effect.