• 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
  • 6 hours Indonesia Stands Up to China. Will Japan Help?
  • 5 hours Shale Oil Fiasco
  • 6 hours Might be Time for NG Producers to Find New Career
  • 25 mins We're freezing! Isn't it great? The carbon tax must be working!
  • 9 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 11 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 3 hours Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 11 hours Beijing Must Face Reality That Taiwan is Independent
  • 10 hours China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 5 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 1 day US Shale: Technology
  • 2 days Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Oil Market Forecast & Review 28th June 2013

Oil Market Forecast & Review 28th June 2013

August crude oil futures bucked the trend in many commodities to post a strong close for the week.  The market was buoyed by signs of an improving economy and comments from a Fed official.

The week started with the market under pressure because of comments last week from Federal Reserve Chairman Ben Bernanke. In his post-Fed policy statement news conference, the Chairman basically said that the Fed would begin tapering its aggressive $85 billion monthly stimulus program when the evidence shows an improving economy. The market read his statement as the Fed will begin winding down the stimulus by the end of the year, but maybe as early as September.

His statement sent interest rates higher. Consequently, Treasury instruments fell along with stocks and commodities. August crude oil futures dropped from $99.21 on June 19 to $92.67 by June 24. At this point, crude oil investors thought the market had dropped enough and mounted a strong rebound, taking the market back to $97.41 by Thursday, June 27.

Also pressuring crude oil early in the week were concerns about the Chinese credit markets. At the start of the week, the market was reacting as if the Chinese markets were moving toward a full-blown credit crisis. About mid-week, however, crude oil began to stabilize after a People’s Bank of China official reassured traders by stating that the central bank was moving toward establishing more “reasonable rates”.

Stronger than expected…




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