Month: March 2012

Participants have adjusted radar on fundamentals as a relative quiescence damps sentiment on Iran. As the bullish geopolitical sentiment moves to the background the market has moved its focus back toward fundamentals which do not feature any bullish price drivers at this point in time.… Read more

Another low-volume, narrow-range trading session passed yesterday, with little change in open interest. What this shows is that opposing directional advocates are not willing to strike into new territory with new positions. Recent surprising news flashes though show how little resolve both sides possess.… Read more

Zeus hurled a thunderbolt from Mt. Olympus yesterday, and the markets responded accordingly. Federal Reserve Chairman Bernanke’s announced that the U.S. economy needs to grow more quickly to bring the unemployment rate down further, reinforcing expectations that interest rates would remain exceptionally low.… Read more

Price action on Friday was the consequence of a news item that crossed wire that sanctions had already reduced Iranian exports by 300k/bpd. Prices had been under pressure just previous to the news reacted to a commerce Department report that new home sales fell 1.6% in February, the slowest pace since October and calling into question the strength of the struggling recovery in the US,

Here is an interesting factoid from yesterday’s data. As China’s economy grew over the last several years the PMI Index has been making lower highs and lower lows indicative of a down trend and suggesting it could go even lower; a bearish signal for oil demand growth.… Read more

WTI is starting to show some weariness after staying above $100.00 now for over a month. While this may or may nor be a consequence of the diminution of the Iran issue’s immediacy what is painfully evident is the slowing Chinese economy.… Read more

The industrial West’s ally, Saudi Arabia, has assured its customers that it will be working with other producers to “restore oil prices to levels that are fair for producers, consumers and the oil industry.” Sounds familiar. Even though API reported a surprise contraction in crude oil stocks of 1.4MM bbls, participants seem more enthralled by addition supplies from the OPEC kingpin.… Read more

Crude oil extended Friday’s gains yesterday, even though Saudi Arabia may increase output. Rising prices of late caught the attention of IMF managing director Largarde who warned that they are “ a new threat that could derail the recovery of the global economy which is not yet out of the danger zone.… Read more

Price action so far, seems to be questioning Friday’s surge. Actually, it should not have surprised with what has been in the wind, of late. Passing the weekend though with no movement on Iran is no doubt prompting some relief selling, as well as registering ongoing concern over Europe’s maladies.… Read more