The top U.S. intelligence official on Tuesday said he was skeptical that a new cyber U.S.-China cyber agreement would slow a growing torrent of cyber attacks on U.S. computer networks, and said his approach will be to "trust but verify."
The overall market sentiment has decidedly moved into the bear camp as prices slid substantially in yesterday’s session with the S&P 500 down over 50 handles at one point. This is really more of a lack of confidence move rather than a move firmly rooted in fundamentals.
Crude oil prices are under pressure again as global growth fears seem to outweigh oil production cutbacks. Weak industrial profits in China and the International Monetary potentially lowering its growth forecast.
While it may not feel like it, crude is in the early phases of a new oil "super cycle." In fact, in the early stages of a super cycle it never feels like it but that is because we are laying the groundwork for supply tightness in the future.
A large draw in total U.S. crude oil stocks reported by the API late yesterday has resulted in a light round of short covering in a market that remains oversold. As of this morning the crude oil market is still in positive territory but well off of the overnight highs hit after the API data release as the industry awaits the more widely followed EIA oil inventory snapshot.