The disappointing monthly jobs report seemed to change the mood of the market as currencies and bonds start to move in a different direction than they were going. The market now is worried about the pace of Fed tapering. The movement normally would be supportive of oil (NYMEX:CLG14) as more stimulus and a weaker dollar (NYBOT:DXH14) should support, yet a nuke deal with Iran is raising concerns of an over-supplied market. So despite the bad jobs report, oil is looking heavy stimulus or not.
The jobs report was pathetic as the U.S. only added 74,000 jobs. While the number might have been impacted by the vicious winter weather, even accounting for that it is a reminder that the economy might not be as strong as it is cracked up to be.
They have a deal. Over the weekend as reported by the New York Times “Iran and a group of six world powers completed a deal on Sunday that will temporarily freeze much of Tehran’s nuclear program starting next Monday, Jan. 20, in exchange for limited relief from Western economic sanctions. The main elements of the deal, which is to last for six months, were announced in November. But its implementation was delayed as negotiators worked out technical details. The agreement faced opposition from Iranian hard-liners and Israeli leaders, as well as heavy criticism from some American lawmakers, who have threatened to approve further sanctions despite President Obama’s promise of a veto.”
The Lundberg Survey is out! Lundberg says that the average price for a gallon of gasoline (NYMEX:RBH14) in the United States rose to its highest level since mid-October hitting $3.3459 a gallon on average across the United States, up from $3.2618 three weeks earlier, according to the survey taken on Jan. 10. The average was slightly higher than the $3.3247 average from the year-ago period.