In the aftermath of the biggest point drop opening in the history of the stock market open, crude oil today is battling back. As European and U.S. stock markets even as china and Japan markets fall the crude market is trying to make a run higher and get out of the $30 per barrel handle danger zone.
Crude oil is trading on very important historical support as the market tries to find support at $44 a barrel. For oil to go much below these price levels and stay there we would have be in a new paradigm, because according to research by Dave Boyce at Dixie-Industrial, it is a level that oil has been in only 3% of the time in the last 10 years.
Crude oil prices are still rising despite the fact that that Atlanta Federal Reserve President Dennis Lockhart told the Wall Street Journal that the economy is ready for its first rate hike in September. Those comments drove the dollar index to its highest level since April putting downward pressure on most commodities, but not oil-- at least not yet.
Puerto Rico needs to restructure its debts and should make reforms including cutting the number of teachers and raising property taxes, a report by former International Monetary Fund economists on the Caribbean island's financial woes said.
Mainstream economic thinking may hold that Greece should stay in the euro zone, but there are those who argue that abandoning the single currency will give the cash-strapped and debt-laden country just the boost it needs.
The highly regarded former chairman of the Federal Reserve, Paul Volcker, has severely criticized the state governments in the U.S. over “faulty practices” used to devise budgets which mask the true financial position of those states.
China has approached foreign banks and gold producers to participate in a global gold exchange in Shanghai, people familiar with the matter said, as the world's top producer and importer of the metal seeks greater influence over pricing.