Just after North Dakota celebrated its billionth barrel of oil out of the Bakken oil formation the U.S. Energy Information Administration (EIA) reported a record amount of oil in storage. Stockpiles rose 1.7 million barrels putting commercial crude inventories to 399.4 million barrels.
The Arctic blast that has descended on the U.S. has been impacting commodity markets in more ways than one. Volume seems lighter perhaps causing a flash crash in gold and regional spikes in natural gas prices that will soon cost consumers plenty.
The markets are getting prepared for a turning point in the ongoing government shutdown as well as the impending debt ceiling. The VIX has spiked, the bonds are looking tired and the stock market seems to be facing up to reality.
It looks like the market, as we have been noting, is out of “trend-mode” and just wavering in a range at this point, with some recent bearishness due to the shutdown and debt ceiling issue. We believe the debt ceiling will be raised this month.