Oil futures markets are trading higher in a modest round of short covering this morning after what was viewed as a bit of a disappointment at the UN yesterday. Rouhani’s speech to the UN was a disappointment as he did not offer anything new.
The day after a wildly bearish Energy Information Administration supply report showed that crude supplies are at the highest level for this time of year in 82 years, central banks and economic data in U.S. piled on to one of the most significant sell-off events this year.
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.
Get ready for a new dynamic in today’s energy trade. In a major shift, the USDA, the NASS and WAOB will begin issuing its major USDA statistical reports at 11:00am CST. For ethanol and corn traders, this is the most notorious report of the year!
So much for Federal Reserve transparency, it is very clear after the release of the Fed minutes that the Federal Reserve either misled the market after the last Fed meeting or there is something more sinister going on.