Traders are understandably focused on digesting yesterday’s less-hawkish-than-expected FOMC meeting as well as today’s Eurogroup meeting, which has been billed as the “drop dead” date in Greece’s debt negotiations, but we’ve also seen a major shift from Norway’s Norges Bank in today’s European session.
The big story in global markets today is yet another leg lower in oil prices. WTI oil was testing key support in the 75.00-76.00 zone, while the Brent contract was pressing against key psychological support at 80.00 ahead of today’s crude oil inventory data.
Crude oil prices are extending their recent collapse heading into today’s U.S. session. The primary factors driving oil lower are the same ones your Economics 101 teacher droned on about during the first week of class: high supply (from Saudi Arabia increasing production) and low demand (from slowing economic growth in the Eurozone and China).