The Energy Space
Energy Price Outlook
As we discussed yesterday, the market has been locked in a sideways direction for more than two weeks and may continue to remain so today. The API data were mixed yesterday afternoon and suggest that today's DOE numbers may take a back seat to events in Germany and inside the Fed. The German constitutional court is anticipated to rule that the ESM is constitutional, which could boost the euro and create commodity-favorable dollar weakness. On the other hand, focus may then shift to uncertainty about tomorrow's Fed announcement where new QE has been priced but is not guaranteed. Other factors such as yesterday's EIA outlook, Israel/Iran, the SPR, China, and Saudi Arabia may remain on the back burner. We think that WTI is over-valued above $100/bbl except in the event of more quantitative easing by the Fed. A lack of QE could push prices back down toward $90.00/bbl....3358 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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