September 15th, 2016
Oil was down 8.5% through close of trading yesterday. Of course, that’s after the 10.3% rise for the week through September 8, showing how “range-bound” oil prices are right now.
But signs are now pointing to us breaking free of this “range.”
You see, wherever oil’s price floor moves, the overall price soon follows. And even as volatility persists, that floor has been rising.
It’s now at about $44 a barrel, while the ceiling is $48. And both are moving up.
Of course, the “30-second pundits” on TV would have you believe otherwise. They’ve returned to their “oversupply” mantra, talking about nothing but oversupply in the market and the return of global volume from conflict locations like Nigeria and Libya.
But here’s what they’re not telling you…
September 12th, 2016
On Friday, U.S. stocks declined by the most in a single day since the Brexit referendum, with the Dow down 394 points.
This bloodbath was sparked by Federal Reserve Bank of Boston President Eric Rosengren putting a September rate rise back on the table, and investors started heading for the doors. Expect other Fed members to spend this week calming the markets.
Friday’s effect on crude oil prices, however, was immediate.
A 23% rally stopped right in its tracks and reversed. When official oil trading closed at 2:30p.m. Eastern, WTI (West Texas Intermediate, the benchmark oil grade traded in New York) was down 3.7% for the day.
Brent (the equivalent benchmark set in London, and more widely used globally) was down 3.9%.
But even as oil started recovering from those dips on Monday, scaremongers started calling for even lower prices.
They’re blaming – of all things – the weather.
You can safely ignore them – here’s why…