Technical & Fundamental Oil Reports Specialists

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Fed loses confidence

Published Thursday, October 9th, 2014

Markets never cease to surprise. With all the negativity of Ebola, ISIS and IMF pessimism who would have expected the US stock market to have its best day in a year? It made up all of Tuesday’s losses and the catalyst was the Federal Reserve minutes.

It would seem that some FOMC members are beginning to worry belatedly about what is happening in Europe and Asia and also about dollar strength. These developments are not good for US exports nor for achieving a 2% inflation rate. Investors considered the desire of some members to emphasise the data dependency of any increase in interest rates as implying deferment.

Oil had another poor day with Brent falling to a low of $90.57/bbl and WTI to $86.83/bbl. The settlements came in at $91.38/bbl (-0.73) for Brent and at $87.31/bbl for WTI (-1.54). The EIA stock figures were bearish with builds across the board. Crude built 5 million bbls, gasoline 1.2 million bbls and distillates 440,000 bbls. Cushing surprised with a big draw of 1.6 million bbls taking stocks there down to 18.9 million bbls.

to read the rest of the report, please click here 

Posted by David Hufton