The combination of slow growth in the global economy along with current fundamentals that are starting to show signs of supply outstripping demand have kept oil prices hovering near the lower end of the trading range for the last two weeks.
The Canadian dollar declined for a second day against its U.S. counterpart after manufacturing in the New York region contracted more than forecast, a sign the economy of Canada’s largest trade partner may be slowing.
The oil complex is in a battle between the perception traders, who look for more stimulative measures, and the reality traders, who see the global economy is slowing and demand for oil will continue to decline.
So why is the US manufacturing sector shinning as compare the EU? Well one reason has to be the historically low natural gas prices. The Impact that new production techniques are having on the manufacturing sector cannot be underestimated.