When OPEC Eyes Are Smiling?
When OPEC Eyes Are smiling, sure 'tis like a morn in spring. In the lilt of OPEC cheating, you can hear cash registers ring. When OPEC hearts are happy, all the sheiks are bright and gay, and when OPEC eyes are smiling, sure, they steal your cash away.
Sure and begorrah how about that smiling OPEC cartel? As OPEC meets on the Feast of St. Patrick it seems like the luck of the Irish is shinning down upon them. The $80 plus barrel oil is the equivalent of them finding a pot o' gold at the end of the rainbow and you will be happy to know that OPEC is in a happy place and their blessing seem to out number the shamrocks that grow. In fact as Bloomberg News reports, Saudi Oil Minister Ali Al-Naomi says that the range of $70 to $80 per barrel oil is a very happy situation. Too bad we can't send St Patrick to Vienna. I think there are still some snakes out there to be dealt with. The Saudi oil minister gushed that he and his cartel are extremely happy with the market, the economy is doing well, it will do better down the road, so I don't see any reason to disturb this happy situation. Yes, why disturb things while OPEC is going so well.
No changes for OPEC and expect this wee bit of cheating on production quotas to turn into a gusher down the road.
Our green president O'Bama has been green with anger over the Chinese's currency peg to the dollar yet even Tim O'Geithner thinks that perhaps tough talk on China may backfire. Could Obama's tough talk on China be adding to the cost of oil? Secretary Tim Geithner says that China should allow the market to decide the fate of their currency but is it possible that by politicizing the issue now may actually delay and impede the Chinese to change their policy? Tim Geithner told the Fox Business Network that he thinks that China will decide ultimately it is in their interest to move to a more flexible exchange rate. He also he believes that pressure on China from Congress is unnecessary and perhaps counterproductive. Still Geithner told Fox Business that he was not concerned about trade war with the Chinese.
The API showed big weather related drops in imports. They reported crude supply increased by 403,000 barrels. Gas down by 3.65 million barrels and distillates down by 756,000 barrels. The East Coast and Gulf Coasts saw big drops and Cushing Oklahoma fell as well.
Oil is still in a trading range and the bulls need to break out of it to declare victory. Playing the ranges is still the way to go!
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.