Lifting the fog.
The global energy market is lost in the fog as the economic outlook seems to be getting a bit murkier. Despite the entire economic stimulus, the question is whether or not it is working. Where are the jobs and better yet, where is the growth going to come from? Perhaps earnings might help if they surprise on the upside yet that is getting a bit hard to imagine at this point.
It seems oil has gone away from worrying about inflation and is now worried that we will see another bout of deflation. Perhaps this week’s economic data may play an important role in determining just where we are at.
Key to watch will be tomorrow's producer price index, that and retails sales may reawaken those fears of a sinking economy. These numbers need to be good or oil should continue its selloff.
In the meantime OPEC production continues to creep up and Nigerian attacks on oil facilities continue. Dow Jones reports that Nigeria’s main militant group, the Movement for the Emancipation Of the Niger Delta, or MEND, attacked the Atlas Cove Jetty in Lagos, the Nigerian commercial Capital, on Sunday. "Heavily armed MEND fighters today, Sunday, July 12, 2009, at about 2230 hours carried out an unprecedented attack on the Atlas Cove Jetty in Lagos state," MEND said in an emailed statement. Officials of the Nigerian National Petroleum Corp., or NNPC, which operates the depot, weren't immediately available to comment on the attack. If confirmed, it will be the first time MEND has carried out an attack in Lagos since it began sabotaging oil facilities in Nigeria in February 2006.
Phil Flynn is vice president of Alaron Trading and a Fox Business Network contributor. He can be reached at (800) 935-6487 or pflynn@alaron.com .
