• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 2 mins Indonesia Stands Up to China. Will Japan Help?
  • 11 hours Might be Time for NG Producers to Find New Career
  • 2 mins Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 18 hours Shale Oil Fiasco
  • 2 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 34 mins We're freezing! Isn't it great? The carbon tax must be working!
  • 2 hours Beijing Must Face Reality That Taiwan is Independent
  • 1 hour China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 18 hours US Shale: Technology
  • 2 days Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 2 days Denmark gets 47% of its electricity from wind in 2019
  • 2 days Wind Turbine Blades Not Recyclable
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Oil Market Forecast & Review 10th May 2013

Oil Market Forecast & Review 10th May 2013

Late breaking news on Thursday may have signaled the top in July crude oil as traders reacted with aggressive selling pressure. The move was triggered by comments from Fed Bank of Philadelphia President Charles Prosser. Speaking in New York on May 9, Process said he wants the central bank to start reducing the rate at which it buys bonds as soon as the next Federal Open Market Committee meeting in June.

He also added that the central bank would be “limited” in capability for more stimulus and the unwinding of the current measures would be harder than expected. This comment created uncertainty for investors, encouraging them to pare positions in risky assets and into the safety of the U.S. Dollar.

July crude oil reacted on the daily chart by selling off into the close. This completed three consecutive days of consolidation. On Friday and Monday, crude oil surged on the heels of last week’s friendly U.S. jobs report. Speculators took the news as a sign that an improving economy would lead to increased demand for crude oil.

Prosser’s comments imply that the economy has reached a positive turning point and that the Fed should consider curtailing its stimulus program effectively lifting the training wheels off the economy. If he is right in his assessment of the economy then eventually demand should pick up for crude oil as the economy improves. The sell-off today suggests that speculators may not believe that the economy is ready to…




Oilprice - The No. 1 Source for Oil & Energy News