Will monetary easing bring higher oil prices even without increased demand?
*The Wall Street Journal, by Claire Rangel , March 8, 2010:
''Oil Prices Rise on Improved Sentiment
Crude futures were marginally higher Monday as investors grew more
optimistic about the economic outlook.
Friday's report of fewer job losses in the U.S. in February plus news
Monday that some Eurozone countries are planning to help Greece resolve
its debt troubles offered support to the oil market.
But analysts cautioned that there has yet to be any concrete sign of a
significant improvement in oil demand, especially in the U.S., due to
the economic recovery, which could temper further gains.
Midmorning, light, sweet crude for April delivery was up 28 cents, or
0.3%, at $81.78 a barrel on the New York Mercantile Exchange. Prices
had touched an eight-week intraday high of $82.41 a barrel earlier in
the session. Brent crude on the ICE futures exchange was up 40 cents,
or 0.5%, at $80.29 a barrel.
'The fundamental driver behind this strength was a positive employment
report,' wrote Jim Ritterbusch, president of trading advisory firm
Ritterbusch and Associates in Galena, Ill. 'We will continue to
emphasize a strong linkage between jobless trends in the U.S. and a
perceived improvement in gasoline consumption as this year proceeds.'
The summer driving season in the U.S., when Americans typically hit the
road for vacation, usually results in higher gasoline demand, so the
market's focus does shift to gasoline supply and production.
Meanwhile, helping to allay fears over the level of sovereign debt in
Europe and boosting confidence in the economy was French President
Nicolas Sarkozy saying Sunday that a number of European Union countries
were preparing a support package for Greece.
However, with oil prices so far struggling to maintain a level above
$82 a barrel, analysts are questioning whether oil has enough momentum
to surge to new highs.''
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
Call Now
Let us help you:
Personal Advisors
available now at
1-800-444-8317