Crude oil is putting on an old-school risk-on rally reminiscent of the early days of quantitative easing. Not only is oil getting support from production destruction, it is also getting help from the Fed minutes.
The market has that easy money feeling again, a phenomenon that was thought to be fading into the rear view mirror on the heels of the U.S. economy. The inaction of the fed last month coupled with the soft jobs data from Friday have market participants acting as if zero interest rates are here for good.
We are seeing wild price swings in crude oil due to Hurricane Joaquin. While oil has plenty of reasons to rally other than the storm, like declining oil output and increased geopolitical risk, the track of the storm seemed to encourage a selloff.
Crude oil is up because production is down. We are also getting a boost from better than expected manufacturing data in China and the increased risk geopolitical risk premium because of Russia's actions in the Ukraine.
Russia said it launched air strikes against Islamic State in Syria on Wednesday after President Vladimir Putin secured his parliament's unanimous backing to intervene to prop up the Kremlin's closest Middle East ally.
Big pain in the oil patch as Chesapeake Energy cuts 15% of its total workforce amounting to 740 high paying energy jobs. The company, which has already cut its capital spending by more than 40% is retrenching even more to stay what CEO Doug Lawler will be an "enduring enterprise."
Crude oil prices were under pressure after Mario Draghi magic seemed too eased off. Oh, sure, after Mario Draghi said he was disappointed with growth and the lack of inflation, oil got a bounce. Yet, when Asian and European stocks gave up the gains, oil prices falter until a headline came out about those Chinese Military ships that are moving off of the coast of Alaska.