Trades with cats wrote:Inventory report and industrial production were not good Atlanta Fed GDP now dropped .2 to 2.4 for 4th qtr. More ugly in my opinion was DOE saying gas and distillate usage down 2.5% from the year ago period. We are the biggest market. India, a growing market is in total turmoil because of political leadership. Between the two countries looking like world demand for gas is going to be soft, not what OPEC wants to see.
Thanks TWC
It doesn't seem that the inventory numbers ever pull the price down, but a drawdown is highlighted by MSM and used to help the Saudi rumor mill.
With two years of build of 1.5m BBD there is a lot of inventory to work through.
With the USD very high (and perhaps to go higher with a rate increase?) the price of oil in other currencies is quite high and
with:
domestic economies limping along and
savings rates so very low and
cash under threat
electricity, rent, food, public transit costs, postal rates, taxes etc keep going up at 10% or so
people aren't spending beyond necessities.
Gasoline prices at the pump (in Canada) are still very high $1.15 litre for premium about $5.40 per gallon
$1.15/.76*3.7854 =$5.73. So who is going to do extra driving?
Everyone is looking to save money where ever they can.
notes--------
1 Canadian Dollar equals
0.76 US Dollar
-----
1 Gallons (US) into Liters:
3.785411784
conversion rate 1 : 3.785411784
Prices:
http://www.statcan.gc.ca/tables-tableau ... 2g-eng.htm