Posts Tagged ‘oil’

Back to school

Tuesday, October 25th, 2011

Manipulation by any other name

Monday, June 27th, 2011

Earlier this month we asked, “Is government manipulation of markets the answer?” in reaction to the release of a study by the United Nations Counsel of Trading and Development (UNCTAD).

Earlier this week the answer from the Obama Administration appears to be “yes” as they decided to open up the Strategic Petroleum Reserve (SPR) along with the International Energy Agency (IEA)to make-up for lost Libyan production. The decision to release 30 million barrels of oil from the U.S. SPR over the next 30 days seems to be a stretch of the emergency role of the SPR and could be an omen of a slippery slope towards more government intervention. (more…)

Oil up

Thursday, June 11th, 2009

Oil’s upward climb continued today, hitting above $73/barrel, on forecasts for higher world oil demand by the International Energy Agency, according to MarketWatch. The outlook for oil could affect the overall economic outlook. In our July Markets story, our experts will discuss the how the energy outlook will impact the broader economic picture and the forecast for interest rates through 2009. One economist said that the rise in oil prices was actually a positive sign, as rising commodity prices signal improvement in the U.S. and global economy. However, rising commodity prices also could be a reaction to a weakening dollar and expectations for an increase in inflation. 

For our full mid-year economic outlook, check out the July issue of Futures magazine, online June 25.

Damn speculators, again

Tuesday, January 13th, 2009

Now that oil is at rock-bottom levels, CBS has decided to start playing the speculator blame game. A 60 Minutes piece that aired this week does what Congress was busy doing all summer: blaming hedge funds and Wall Street trading desks for the skyrocketing price of oil. While Congress created an avalanche of anti-speculation bills, several trading insiders and the Commodity Futures Trading Commission (CFTC) maintained that supply and demand factors were to blame. 

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Oil slick

Wednesday, December 5th, 2007

Mixed government inventory reports caused a drop in energy futures Wednesday, and an announcement by the Organization of Petroleum Exporting Countries (OPEC) did little to change the situation. OPEC decided to leave production levels steady at its meeting in Abu Dhabi, but investors shrugged off OPEC’s decision, according to the Associated Press. The Energy Department’s Energy Information Administration (EIA) reported a larger than expected decline in crude supplies and increases in heating oil and gasoline inventories.

“OPEC’s not adding production in the market was expected,” Eric Wittenauer, energy analyst at AG Edwards, says. He called the market oversold in the near term and said he remains bearish on the market overall.

According to the Associated Press, light, sweet crude for January delivery fell 83 cents to settle at $87.49 a barrel on the New York Mercantile Exchange, oil’s lowest close since Oct. 24. Prices drifted lower in after-hours trading, dipping below $87, the AP said.