The Federal Reserve in their FOMC minutes seemed to suggest that they were closer to a rate hike than some had thought. ...Yet with weak data in Europe and weak inflation data it seems that Europe won’t be in any position to raise rates.
Crude oil futures prices were under pressure during most of the week, as strong inventory builds and the increasing value of the U.S. dollar eroded crude oil prices. Production growth in the U.S. continues to outweigh solid demand.
Brent crude is gaining on West Texas Intermediate contract as fears are rising that the situation in Egypt could spin out of control. That tension added more upward momentum to Brent, which already was being supported by labor unrest in Libya.
U.S. oil production is soaring, hitting the highest level in 22 years at 7.55 million barrels a day! Oh sure U.S. oil supplies fell by 2.8 million barrels but that was mainly because U.S. refiners went on a tear producing product.
Oil bulls were living in a Fed paradise. Somehow up until the Fed meeting the market must have believed that Fed Chairman Ben Bernanke wasn't serious about that taper thing, but they found out that he was serious, very serious.
Oil supply plunged last week by a whopping 6.3 million barrels last week. That drop was dramatic but we still are ending the month of May with supplies at a 10-year high -- as opposed to the 81-year high last week.
Fed Chairman Ben Bernanke does his best impression of a one-handed economist. But while the market focuses of the possibility of softening demand because of the Fed and China there was one area where demand actually improved...
Oil prices fall as U.S. oil supply rises to a record for as long as the Energy Information Administration has been keeping records. You have to go back almost 70 years to find a time when energy supplies were this high at this time of year.