Brent crude prices, the benchmark for half the world’s oil, will weaken for a second year in 2014 as U.S. output expands and threats to Middle East and North African supply ease, the most-accurate forecasters said.
The government shuts down and the outlook for energy just got a little murky. While transportation is not directly impacted by the government shutdown, a prolonged stalemate could slow the economy and U.S. oil demand.
Oil prices started to give in to expectations of slowing demand, but it was the dollar to the rescue. Oh sure some traders are worried about Tropical Storm Dorian and its track, but it will be Hurricane Ben Bernanke that may be the major factor.
A wildly bullish American Petroleum Institute report and reports of refinery issues as well as a blowout had crude go crazy late in the day. The bulls have gripped control as the market has gone out of control.
At a time when U.S. equities are trading near a record and the dollar is having its best start in three years, commodities will finish this quarter little changed from where they were at the end of 2012.