Hitting up the BRICS
The old saying is that when things were going bad you were hitting the bricks. Now we are hitting up the BRICS. Oil prices are rebounding despite a slew of country and bank downgrades mainly because the markets are hopeful that global leaders are ready to hit the market with a "Bazooka" of borrowed money from the cash rich emerging markets like Brazil, Russia, India and China. The International Monetary Fund, along with emerging market economies, are working on a way to build the International Monetary Fund's firepower to prepare to get ready to shock and awe the global debt ridden economy out of its flat-line dismal direction.
The Financial Times, or the FT as they like to be called, says that discussions, in parallel with talks in the Eurozone about creating a bigger “bazooka” to intervene in financial markets, are aimed at producing a confidence-boosting announcement by the Group of 20 heads of government summit next month.
Let's face it the biggest moves in oil are more about EU hopes and bailouts than it is about supply and demand. Oh sure, we moved a bit on a big drop in refinery runs and the bigger than expected drop in gasoline and distillate supply, but it is maintenance season.
The market seems pleased that China's inflation rate fell to 6.1%.
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.