The major news flow of the past several days have generated outsized moves in the oil market. Having been left for dead, yesterday, WTI has rallied more than three dollars off its intra-day low of 77.28 to 88.50. The catalyst continues to be the euro zone crisis.… Read more
Energy OverView June 28, 2012
WTI crude oil prices settled above $80 per barrel, yesterday, for the first time in several days. There are supportive factors beyond the din of the euro zone mess and, generally, poor economic data. A strike by Norwegian oil workers that is rapidly becoming intractable, work on an Iraqi oil field, and an executive shake-up, to put it lightly, at Nigeria’s national oil company are helping to support oil prices for now.… Read more
Energy OverView June 27, 2012
The German Chancellor’s emphatic rejection of the idea of euro bonds certainly gets the coming Pan-European economic summit off to a less than harmonious start. There is no dearth of ideas about what to do to resolve the single-currency bloc’s conundrum, but in the final analysis though policymakers have to sell it to their constituencies.… Read more
Energy OverView June 26, 2012
WTI surrendered pre-weekend short-covering gains fairly quickly yesterday. However, recent lows remained unchallenged with sellers only managing to post a 78.03 low on tepid volume. Sovereign debt troubles, shaky European banks, OPEC moderates opening the spigots and slowing growth in the US and China remain the overarching obstacles for potential energy demand growth.… Read more
Energy OverView June 25, 2012
Q2 will come to a crescendo with the EU Ministers meeting on June 28 – 29. In the days leading up to it, market movements will be a headline driven function. Heading into next week Greece wants to renegotiate its deal, Spain is likely to need a larger bank bailout and it is unclear as to what Italy may or may not need.… Read more
Energy OverView June 22, 2012
The ides of a deflationary slowing now seems to be dominating participants’ psyches. The trade appears to be so concerned about slackening demand and burdensome supply that minor they are now combining with speculative interests’ negative viewpoint. The Feds recent action, or rather inaction, underlines their inability to take more decisive action.… Read more
Energy OverView June 21, 2012
August crude oil prices have finally broken important technical support levels, with fundamentals clearly negative. Global aggregate demand is going to suffer greatly unless structural monetary, fiscal and political changes are forthcoming. Legislative wrangling in the US, ad hoc palliatives in Europe and Chinese micro-managing have all provided scant remedy.… Read more
Energy OverView June 20, 2012
August crude oil prices meandered over familiar territory yesterday, unable to find direction with a dearth of fresh news from Greece or the G-20. The market did receive some support on hopes that central banks are closer to injecting more monetary stimulus, which was also reflected in optimism in the equity markets and a 0.7% decline in the US dollar.… Read more
Energy OverView June 19, 2012
According to a draft communique prepared for the G-20 summit, Europe would take, “all necessary policy measures” to resolve its crisis. Hollow words that have been heard before, and a “grand bargain” remains elusive. Similarly, talks in Moscow between the West and their Iranian antagonists over the latter’s nuclear program appear no closer to resolution either.… Read more
Energy OverView June 18, 2012
The sum and substance of yesterday’s Greek elections is exactly nothing, as the markets’ quick rejection clearly shows. The first announcements from Athens set off a gap higher opening last night, but the surrender of positive territory began in the first hour of trading in last night’s Asian session.… Read more