The Energy Space
Energy Price Outlook
The oil markets have been locked in a sideways direction for more than two weeks now, and it's difficult to see what will push prices into a new plane. Given that prices in the last two weeks have held steady despite Hurricane Isaac, Bernanke's Jackson Hole speech, major ECB actions, and a disappointing payrolls number, it's hard to put too much confidence into Wednesday's German court ruling on the ESM and/or the Fed policy announcement on Thursday as having the ability to change direction. Those will be the major focus, however, and both are currently expected to be a bit positive for oil prices. Support may also come from violence in the Middle East, tightening oil product stocks, and stimulus measures in China. Opposing bearish factors include a potential SPR release, negative comments from Saudi Arabia on oil prices yesterday, a negative seasonal pattern in gasoline, and WTI's inability to break out above the late-Aug peak at $98.29 and the 200-day MA at $96.65. We think that WTI is over-valued above $100/bbl except in the event of more quantitative easing by the Fed....1976 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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