Month: August 2011

Prices spent the Asian session little changed, but the European session began a rout that may produce the sharpest monthly drop since May on signs the global recovery is faltering, even as prices head for a weekly gain Recent data from global economies is showing that the sluggish growth pace more likely will continue and the political response remains muted and inconclusive…

Volatility was the order of the day yesterday as rude oil tested both ends of a more than $3.00 range…twice! Optimism was pared as initial jobless claims rose +5K to 417K in the week ended August 20th. Later, exuberance returned as it was announced that Uncle Warren Buffet announced a $5B investment in BofA.… Read more

Crude oil prices rose to their highest levels of the session yesterday when the durable goods orders surprisingly jumped in July after contacting a month ago, offering a glimmer of hope that the struggling US economy was reviving. The EIA report ,showing a draw down in crude oil stocks, seemed to echo that sentiment.… Read more

Crude oil rose again on Tuesday, garnering support from several influences. Initially, the euro benefited at the expense of the dollar. A further boost was received from manufacturing data from China and Germany that was less gloomy than expected. Another force majeure…

The media seems more optimistic about the return of Libyan oil damping prices than market participants, who have bid up prices to last week’s levels. Crude oil for October delivery finished Monday 2.01 higher from Friday’s close and at this writing is over another dollar higher still.… Read more

The big story this morning is the turn of events in Libya. At this writing, apparently, rebels have seized the capital, Tripoli, have Qaddafi’s sons in custody and are searching for the dictator, himself. The Colonel’s 42-year long rule has not permitted…

Media outlets keep referring to the selling as “panic.” The horrible truth is that it is much more orderly self-fulfilling than the previous bout of selling last week. There now seems to be a mind-set that has descended on participants that has policymakers completely impotent in dealing with current conditions and concluding that recession, or worse, is inevitable…

Crude oil prices are under pressure again today, after a week’s short-covering rise, consequent to expectations that European and US economies will affect negatively on demand. The cue was taken from the EIA report which showed that US crude inventories rose, indicating faltering demand.… Read more

The weaker demand outlook that has pressured crude oil since the break from 100.00, was punctuated by a brief relief rally in the run up to the Franco-German summit yesterday. While the market had anticipated concrete and new resolutions for the sovereign crisis in the periphery, the meeting placed the main focus on medium-term governance issues.… Read more

Crude oil prices briefly moved above 88.00 in the final moments of yesterday’s NYMEX sessions, as latecomers to last week’s party, threw in the towel. Still a net decline in overall Sept./Oct open interest shows that new longs are not entering, a reflection, not only of growing margin calls in other markets but also pointing to questionable demand, going forward…