There is a lot on the plate for crude oil this week. Not only do we have the Fed meeting, we have the possibility of new sanctions on Russia and the potential pullback from the Iranian nuclear deal. This came against a backdrop of surging global demand for oil and related products.
Crude oil and product prices are putting in what should be a major seasonal bottom as global oil demand surges and the U.S. Petroleum Industry looks to fill the globe’s needs. In fact, the U.S. petroleum industry is doing their part to try to reduce the trade gap by exporting record amounts of oil and products. The U.S. shale revolution is touching the world in ways thought unimaginable by many just a few years ago.
Rex Tillerson out as secretary of state, inflation is stable and OPEC cuts will remain in place, a bullish American Petroleum Institute report... Crude oil prices had some wild swings yesterday as the market whipsawed from one headline to the other. Oil was modestly higher but plunged after a report that Iran was thinking to raise output to pay off some Chinese investors.
March madness started early in crude oil as prices fell on relatively light volume and focused on bearish news about ignoring bullish news at its own peril. Traders sold oil off on a report that showed an increase in supply in Cushing, Okla., but it is about time. The Nymex Storage hub has seen supply fall at a record pace in recent weeks, and seeing that we are deep into refinery maintenance we should start to see the supply recover.
Well, if you thought that OPEC production cuts were difficult to put in place, it may be even harder to work out of them. The extremely successful OPEC cuts, along with their co-conspirator Russia, will at some point be scaled back but raising oil production may not be as easy as it seems.
Apparently, President Donald Trump knows what a dictator wants. They want to be treated rough. Instead of being coddled and respected, they want to make sure that the guy they are dealing with is as tough as he is, and only then can you gain his respect, or maybe his fear. Instead of starting a nuclear war, President Trump’s tough talk and harsh sanctions has brought Kim Jong-un to the negotiating table.
Crude oil prices got a scare on reports that Gary Cohn, chief economic advisor to President Donald Trump, is resigning, which raised fears that the world is on the brink of an all-out tariff and trade war. Cohn, the former Goldman Sachs banker, is said to be quitting because of his opposition to the steel and aluminum tariffs that President Trump has threatened to put in place.