Month: January 2012

The sentiment pendulum for oil prices has apparently swung back towards renewed optimism concerning Europe’s travails. The single-currency has moved back towards 1.3200 to the expense of the dollar, making oil somewhat more attractive. This solace must be forming against the backdrop of the sixteenth summit producing resolution.… Read more

Last week’s optimism over the Fed’s decision to continue back door QE, the possibility of a resolution on Greece and perception that a potential embargo of Iranian oil would have little short term impact on oil prices appears to have cooled coming into the new week.… Read more

Crude oil prices are holding to the upper reaches of the week’s price action, a consequence of a surprisingly strong euro exerting downward pressure on the dollar and the Iran situation adding geopolitical risk to the equation. However, a tightening of the Brent/WTI spread is probably indicative of an assessment supply disruption associated with an embargo of Iranian crude is likely to be little more than a logistics exercise.… Read more

More positive economic news this morning has the markets on the rise, following gains from yesterday’s pronouncements from the FOMC regarding its commitment to low interest rates for the foreseeable future. The Fed also seemed to hint at a possible QE3 regime.… Read more

Crude oil prices continue to leak keep as skepticism over European resolve rises, and Iran’s recent belligerence looks more and more like empty bluster, as well. API reported last night on swelling crude oil stocks, raising concern over the sustainability of demand in the US.… Read more

Price action has not struck out for any new territory so far today. Bracketed on its upper end as rising potential for supply disruption, with the lower extremities expressing hope that European debt resolve is at hand. A substantive break of either side does not appear imminent.… Read more

Selling in the Asian session continued Friday’s late sentiment, but that was reversed as the opening of the European session approached. Investors seem to have perceived that a puff of white smoke could be seen emanating from negotiations going on with the bond holders all of last week and through the weekend.… Read more

Crude oil prices have surrendered most of the week’s gains as a counter trend move in the euro appears to have concluded to the dollar’s benefit. The US greenback was also helped by declining initial jobless claims. Failure of European diplomats to reach an agreement on the details of a possible embargo of Iranian oil has also must allowed for some long liquidation…

So far today, crude oil prices have held a fairly tight range. A precarious equilibrium, balancing between demand expectations and potential supply disruptions, appears to have been temporarily struck; as IEA lowered its global demand forecast and drum-beating for a causus belli over Iran’s nuclear intentions continues apace.… Read more

Headlines are driving the euro higher, as the IMF seeks to add substantial resources to aid in the debt crisis. Help from China and Brazil appears imminent, as well. Iran will just not go away, even as most acknowledge that an Iranian engineered supply disruption will carry far greater cost for them than the may want to endure.… Read more