The New Year is bringing clarity to the oil market and maybe to the stock and gold market as well. Oil prices got hit hard as weak data out of China and the reality of abundant supply stated to weigh on market sentiment.
While the market is initially celebrating a historic deal with Iran there may be other geo-political risk factors and doubts that may subdue the celebration. Oil traders are giddy because they believe this will open the door to more Iranian oil.
Word that the Citgo Lamont Refinery was listing raised fear in the broader RBOB futures market that that refinery could be down for many months. Today is Fed day and I am talking about supply and demand and not about the Fed!
Oil is falling after tropical storm Karen and now faces the stormy seas of U.S. politics. Production is now coming back on-line and except for being oversold the bulls are finding it hard to find much to hang their hat on.
The Federal Reserve has expanded its scrutiny of banks’ physical commodities operations to encompass businesses run by Goldman Sachs Group Inc. and Morgan Stanley that Congress had previously authorized.