Posts filed under “Energy”

Oil = $88

Well, this is a welcome change: Crude Oil trades as low as $87.47 this morning, most likely on fears of a slowing US economy.

The key question now is how much and how fast this "cheap" oil will save consumers money, so they can go shopping and save the retailers’ holiday season . . .

Jan_2008_crude_futures

chart courtesy of Barchart.com

Category: Commodities, Consumer Spending, Economy, Energy, Technical Analysis

Inflation? What Inflation?

A tale of two headlines:

Inflation Fears Hit Eurozone

          and

Goldman Sees Funds Rate Cut to 3%

Won’t someone please explain this to me?

How is it possible that the regions of the world with strong currencies — like Europe, U.K., Australia, and Canada — are having inflation problems. And yet at the same time, the nation having a record low currency — i.e., the United States and our Dollar — doesn’t seem to either inflationary pressures (At least according to official CPI data). And we seem to have little concern about further currency induced price increases.

Am I the only person who finds this incongruent?

If Goldman Sachs is correct, and the Fed does eventually cut rates to 3% — what might that mean for various dollar priced commodities like Oil & Gold?

Probably very little — if (and this is a big IF) we are in the throes of a recession. But what if the Bulls are right, and this is merely a mild mid cycle correction?

A 3% Fed rate could mean Oil at $150 and Gold at $1200.

>
Excerpts after the jump . . .


>

Sources:

Inflation fears hit eurozone

By Ralph Atkins in Frankfurt and Krishna Guha in Washington
FT, November 27 2007 18:02

http://www.ft.com/cms/s/0/55ff8ca6-9d10-11dc-af03-0000779fd2ac.html

Goldman Sees Funds Rate Cut to 3%
Greg Ip
WSJ, November 27, 2007, 9:26 am
http://blogs.wsj.com/economics/2007/11/27/goldman-sees-funds-rate-cut-to-3/

>

Read More

Category: Commodities, Credit, Derivatives, Economy, Energy, Inflation

Crude Oil = $99

Category: Commodities, Energy, Technical Analysis

PPI Follow Up

Category: Commodities, Data Analysis, Energy

Widening Spread Between Nat Gas and Crude Oil

Category: Commodities, Energy, Technical Analysis

Are Retail Stocks Bargains?

Category: Consumer Spending, Economy, Energy, Retail

Crude Oil = $98; Gold = $845

Category: Commodities, Currency, Energy, Federal Reserve, Inflation, Markets

Headline of the Day: Electricity Deregulation

Category: Energy, Taxes and Policy

Crude Oil hits $97

Category: Commodities, Economy, Energy, Markets

Headline of the Day II: $1 Trillion!

Category: Commodities, Contrary Indicators, Energy, Valuation