While traders continue to stay focused on the “glut,” the futures markets are starting to signal a tighter market in the second half. The back end of the futures market is encouraging oil to be bought today and saved in storage for delivery down the road as the market must expect a dramatic tightening of supply. The speed to some of the back months is as high as $1.50 a barrel.
Before he was fired, former FBI Director James Comey has sought more resources for Russia probe. In a farewell letter to staff, Comey said the President had the full authority to fire him and would not dwell on the decision. Democrats called for an independent probe of the Russia issue.
There is a lot of argument on both sides why this was either the right or wrong thing to do. That said, the real point is the market response in what was a fraught environment due to the President returning to Twitter: U.S. equities decided that the U.S. leaving the Paris Accords was a good thing. And that was reinforced by the equities still strong performance after Friday morning’s less than bullish U.S. Employment report.
The dollar was on track to record its worst week against a basket of currencies since July on Friday, having given up almost all the gains made since Donald Trump, now surrounded by political worries, was elected U.S. president last year.