EU bailouts driving energy markets

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 pflynn@pfgbest.com.

About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.

 

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