• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 2 hours Greta named Time Magazine "Person of the Year"
  • 4 hours Everything you think you know about economics is WRONG!
  • 54 mins DUMB IT DOWN-IMPEACHMENT
  • 6 hours americavchina.com
  • 5 hours POTUS Trump signs the HK Bill
  • 6 hours Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 8 hours WTO is effectively neutered. Trump *already* won the trade war against China and WTO is helpless to intervene
  • 18 hours Winter Storms Hitting Continental US
Martin Tillier

Martin Tillier

More Info

Premium Content

What Does U.S. Economic News Mean For Oil?

As a rule, I try to stay focused on energy here, and reference broad economic conditions only as one of the many factors that influence those markets. In that context, any single economy, even one as big as the U.S., is not that significant. Right now, though, fears about global growth are dominating oil prices, and the U.S. remains one bright spot in an otherwise sluggish global picture. Data released Friday morning, however, suggest that that may be changing, so a look at the U.S. economy is justified.

The jobs report released by the U.S. Labor Department is one of the most important sets of numbers every month. That has been especially true during the recovery from the last recession. Early on, a healthy jobs market was seen as the main indicator of the pace of recovery, but recently the import of the report has changed. It is now parsed to give clues as to what the Fed is likely to do.

That has resulted in the stock market behaving counterintuitively at times. This morning, for example, we learned that less jobs were added in September than predicted, but the stock market jumped, and oil followed suit. The weakness was seen as making it even more likely that the Fed would cut interest rates further. That would cause bond yields to fall and make stocks more attractive on a relative basis, so the jump in the major stock indices makes sense.

What doesn’t necessarily make sense is oil following stocks on the news.

(Click to enlarge)

Obviously,…



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play