The eurozone countries have an imbalanced approach to jumpstarting their economies, relying only on monetary policy but failing to address fiscal issues such as punitive taxation and over-bloated entitlement spending.
Even the bulls are throwing in the towel, yet there may be signs that the crude collapse may slowdown just a bit. Still, oil is headed longer-term toward $88, a target we have had for weeks and now is looking more like we are going to be right on target.
We said the break was coming in oil and it came with an accentuation point from the EIA. Surging supply and the lessening of the Fed’s influence on the market should force a test to the lower end of the old support near $88.
Companies such as Royal Dutch Shell Plc and China National Petroleum Corp. are starting to drill for gas and oil in shale rock in Sichuan, the nation’s most seismically active province, a process geologists say raises the risk of triggering quakes.