Now you see it. Now you don’t. Presto, change-o the U.S. oil glut has disappeared. Low crude prices and a booming global economy have caused the biggest oil glut in history to disappear before your very eyes. The American Petroleum Institute reported another massive 5.121 million barrels drop in U.S. crude supply dragging stockpiles back to the lower end of the average range for this time of year.
Brent Crude crashed through $70 a barrel and WTI just shy of $65, shattering another glass ceiling many oil bears said was impossible to ever see. This came as OPEC said it has no intentions to relent on production cuts and overshadowed rising rig counts. Even as the market gets a little turn around Tuesday profit taking, the oil bears are having to throw in the towel.
Is China headed for a ‘Minsky moment? One Chinese economist has warned that they could and that warning, along with some comments from a Russian oil company, seemed to slow what had been an impressive oil rise ahead of today’s November Future expiration.
In the previous editions of the Market Overview, we have already analyzed the relationship between gold and some major world currencies, such as the U.S. dollar, the euro, or the Japanese yen. But what is the link between the Chinese yuan (officially: renminbi) and the yellow metal?