The Energy Space
Energy Price Outlook
Chuck Schumer told Fed Chairman Bernanke in a July Q&A to "get to work." The statement was made in the context of Senator Schumer's plea to the Fed chairman to implement more easing programs to counter the inability of Congress to come together to fix fiscal policy and thus spur the economy. That may come to the front-burner this week after Friday's payroll numbers showed signs that the economy is still unable to get out of its rut. Oil ended higher on the news on Friday, and should generally be supported by it this week as the extra liquidity moves into hard assets. Additional support will be offered by the Chinese stimulus package, dollar weakness, tightening oil product stocks, lost Gulf of Mexico oil production, and the ongoing threat of an Israeli strike on Iran's nuclear facilities. The negative focus will be on WTI's inability to break out above the late-Aug peak at $98.29 and the 200-day MA at $96.65, a potential SPR distribution, and a negative seasonal pattern in gasoline. The oil market is sitting at levels that are fairly priced in our view, so trading may remain difficult in the near-term....1751 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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