T'was the last Energy Report before Christmas, while all through the pits the oil had rallied before taking a hit.
The traders put on their positions with care, yet a stronger dollar and stock-market gave the buyers a scare.
In the upcoming year the buyers will start fearing the FED, while visions of rate increases will dance in their heads. And with Obama as Chief, and trade that will be capped, demand growth for oil might be in for a long winter's nap.
Still Nigeria and Iran are starting to make a big clatter, yet with a glut of oil and spare capacity it does not seem to matter.Any production void will be filled in flash, as oil producers are real hungry for cash.
You see OPECS production continues to grow. Even as Demand for oil is relatively slow. When, what to my wondering eyes should appear, the cartel thinks theses high prices can stay high next year...
But the little old cartel, might be missing the trick, if production exceeds demand growth oil could fall like a brick, as the dollar raises oil prices will quickly be tamed. As the cartel will be cheating and I will call them by name! Now Iran! Now Iraq! Now Kuwait and Algeria. On Venezuela, on UAE, on Qatar and Nigeria. Libya and Ecuador have their backs to a wall, and Saudi and Angola may cheat for them all. As the year ends the stock market continues to fly, because when the Fed met with an obstacle, new rules did apply.So up to the house-top the money supply grew,With the sleigh full of dollars, and low interest rates too.
When rates will rise Fed is aloof. But if inflation pressures rise stimulus could be gone in a poof. The biggest threat to oil as things start turning around, is that the battered US dollar may start to rebound.Our soldiers are fighting in lands far away, and we should remember to pray for them each passing day. It is for freedom that they are putting up this incredible fight. So to them and all of you Merry Christmas and good Night!