The most likely outcome in today's meeting is that the Fed will taper bond and MBS purchases by about a quarter. The market at first will freak out and we should see sharp drops in metals and a selloff in stocks and petroleum.
The Energy Information Agency shocked the market by reporting that U.S. Crude supply increased by 6.7 million barrels putting supply at the highest level in 82 years. So much for that uptick in gasoline demand.
The oil markets are trying to rebound after falling hard on Cyprus headlines and deadlines. The risk of Cyprus leaving the Eurozone is rising after the attempts to sell natural gas reserves to Russia have reportedly failed.
Stimulus from China vs. concerns about Europe is creating a tug-o-war across the commodity complex. WTI oil prices also seem to be losing their relationship to the Brent crude as Middle East tensions are heating up.