Not So Fast! Don’t get too excited about that robust jobs report. The economy is still fragile according to Fed Chairman Ben Bernanke.
Big Ben gave gold a bounce off the lows and Treasuries a pop but his magic did not seem to give inspiration to the weakening crude oil market. Is it possible that the marketplace is coming to grips with the reality that oil demand is lousy? Or could it be the fact that the EPA has declared that green house gases are a public threat. Public Threat! Oh no! Like Public Enemy number one or like a terrorist? No a threat to our health and despite the lies and the suppressed data, EPA Administrator Lisa Jackson said science overwhelmingly shows greenhouse gas concentrations are at unprecedented levels due to human activity. Hang on to your wallets folks as the EPA now has the power to come in and regulate most business across America if they are spewing those public threatening green house gases.
The ruling affects businesses and buildings that emit 250 tons of greenhouse gases per year. The government can now go in and regulate and get their clean green hands on millions of businesses and homes that were free from regulation. In fact any building over 100,000 square feet would be regulated which means Al Gore may have to move! This may be the biggest assault on personal freedom under the guise of a manipulated scientific data to save ourselves from ourselves. Yet more government control over your life and money.
The truth is that this is bearish for oil as we go along this path. We will see more money thrown at alternative fuels and natural gas which may not be bad but it will hurt our nation's ability to prosper. This will send unemployment higher and add to our deficit.
The New York Times reported bombs in Baghdad killed at least 101 people in a coordinated assault. The Times says that five bombs, including at least one suicide attack, struck near a university, a court, a mosque and a market and in a neighborhood near the Interior Ministry in what appeared to be a coordinated assault on the capital. At least 101 died and scores more were wounded.
Oil now is shifting to a lower range. Natural gas has reversed course on the first significant cold of the season but also is benefiting from people covering the long crude-short natural gas trade. Oil looks like it is entering its old lower trading range which means we are probably going to try to work down towards $65 a barrel.
Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at firstname.lastname@example.org.