The Energy Space
Energy Price Outlook
The oil market will focus on the FOMC meeting today for indications as to whether increased liquidity will eventually seek a home in commodities and other hard assets. The consensus of economists shows a 3-1 ratio in favor of there being some form of new quantitative ease (QE) announced, but while that's the case, we wonder as to how much of that has been already priced by the market. We also wonder whether recent frustration expressed by the Fed chairman about fiscal policy is real and whether it will deter any decision in favor of QE. Secondary focus will remain on positives from the Middle East (Libya, Egypt, & Iran), and Tuesday's bullish EIA report, while negatives look to an SPR release, slowing growth in China, and bearish comments made on oil by Saudi Arabia this week. We think that there's a downside risk developing, as prices are near the upper end of the recent trading range and due to the potential that the Fed will either match or disappoint expectations today....1258 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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