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Ukrainian President is ousted, Russian reaction is awaited

Published Monday, February 24th, 2014

Last week was characterised by a generally bullish oil market supported by cold weather and supply disruptions. On the political and economic fronts we had our fair share of bullish as well as bearish sets of data. These, on balance, were slightly negative in the US and China whilst optimism persisted on the Old Continent.

Sub-zero US temperatures impacts both oil and stock markets

Weather certainly played its part in shaping sentiment. Negative US data influenced by the exceptionally cold winter prevented the stock markets advancing last week. This included falling home builder sentiment and housing starts. It is only logical to experience a slowdown in economic activity when a nation is in a state of hibernation and thus the adverse weather conditions are likely to have a negative impact on 1Q US GDP growth. The DJIA settled 0.32% down and the S&P 500 index lost 0.10% on the week. It is fair to say that equities would have performed much better had it not been for the weather as US jobless claims fell last week and factory activity hit a 4-year high.

 

Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.