• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 2 hours Saudi Arabia turns to solar
  • 18 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 1 hour Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 12 hours Could oil demand collapse rapidly? Yup, sure could.
  • 6 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 2 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 12 hours Gazprom Exports to EU Hit Record
  • 8 hours U.S. Withdraws From U.N. Human Rights Council
  • 1 hour Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 17 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 13 hours OPEC Meeting Could End Without Decision - Irony Note Added from OPEC Children's Book
  • 11 hours "The Gasoline Car Is a Car With a Future"
  • 10 hours What If Canada Had Wind and Not Oilsands?
  • 23 hours EVs Could Help Coal Demand
  • 5 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 1 day Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
Alt Text

Tesla’s Newest Car Will Have Rocket Thrusters

Tesla CEO Elon Musk tweeted…

Alt Text

Venezuela Won’t Have Enough Oil To Export By 2019

GlobalData recently projected that Venezuela’s…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Fed’s Decision Could Help Avoid The Worst Case Scenario For Oil

Newcomers to financial markets could be forgiven for not knowing this, as we haven’t seen a rate hike in the U.S. for nine years, but when the Fed raises rates the responses in financial markets usually follow a predictable pattern. Stocks drop as higher interest rates are predicted to slow investment and economic growth, the currency appreciates as it becomes relatively more attractive, and, as a result of that, commodities, including oil, go down in price.

This week’s news followed that pattern initially in two markets as the dollar surged and oil dropped back to close to the previous lows, but stocks rose immediately following the announcement. That had the look of a self-congratulatory move on behalf of traders…they had all predicted a 25 basis point (that’s a quarter of one percent for those that aren’t fluent in bond speak) increase and an accompanying statement with a distinctly dovish tone and that is what they got.

Once that initial thrill of being correct wore off, however, stock traders have returned to a focus on the problems. Global growth is still somewhat anemic, U.S. stocks look fully valued and there are signs of trouble brewing in the high yield credit markets. All of those initial gains had gone in 24 hours. Given that, it seems counterintuitive to believe that oil will behave in a similar way and reverse course. The reaction in WTI was, after all, the logical one. If we look a little deeper at the possible consequences…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





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