Oil hurt by European demand destruction fears

Do You See What I See?

Said the Fitch to the market to beware, I think that we may down grade, I think that we may downgrade, European countries everywhere. I think that we may down grade, I think that we may downgrade. The euro fell to another low and it hurt the silver and gold, it just tanked both silver and gold.

Kim Jong Ill is dead as a door nail. Who will lead North Korea? Who will Lead North Korea, his son Kim Jong Eun who might be just a dumb and a madman just the same and should carry on his father’s shame?

Oil is being pulled everywhere! Do you see what I see? Do you see what I see? Risk avoidance almost everywhere!

Oil prices are aging, being pulled in different directions on downgrades and worries about the succession of Kim Jong Ill in North Korea.

The day after Fitch downgraded the viability ratings on eight of the world’s biggest banks including Bank of America Corp., Barclays PLC, BNP Paribas, Credit Suisse AG, Deutsche Bank AG, The Goldman Sachs Group Inc., Morgan Stanley and Societe Generale, it went after Europe saying that a European resolution to the crisis is not very likely. Oil traders as well as other markets are running for cover as the hope that Europe might get tidied up looks less likely.

Mario Draghi of course is still showing his reluctance to an ECB bond buying program, which many traders think is essential to keep demand for oil strong. Worries that the ECB will error on the side on austerity instead of growth means that the Eurozone is doomed to a deeper rescission. A slowing Europe could mean a slower China and slower demand for oil.

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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