It is a new day for crude oil as it tries to adjust for another big increase in overall crude oil inventories, a more hawkish Fed Chair Janet Yellen and the impact of President Donald Trump’s executive order to roll back commodity regulations that have helped foreign oil companies prosper at the expense of U.S. oil companies.
U.S. producer prices rose more than expected in January, recording their largest gain in more than four years amid increases in the cost of energy products and some services, but a strong dollar continued to keep underlying inflation tame.
Crude oil dynamics are changing as rig counts rise, oil discoveries fall and OPEC compliance to production cuts are at an all-time high. Despite short-term worries about a U.S. glut, global oil inventories are on a path to a major tightening scenario and shale oil production alone will not change that.
World stocks and bond yields rose on Monday, lifted by a re-emergence of so-called "Trump trades" as investors bet that the U.S. president's tax reform plans will boost economic growth and corporate profits.
The best OPEC compliance EVER! Phenomenal! Tax Cuts! Phenomenal! It is a phenomenal Friday! Not only is OPEC compliance of production cuts the best-ever per a report by the International Energy Agency, President Donald Trump is promising a phenomenal tax cut plan and that drove U.S. stocks to records and increased already increasing demand expectations for crude oil. We are setting the stage for some phenomenal moves for crude oil in a new era of phenomenal!