Big Oil could be in a unique position to protect its interests against a Republican proposal to tax imports, given that President-elect Donald Trump's cabinet is studded with oil champions sensitive to the risk of higher gasoline prices.
Crude oil prices are springing up into the New Year as signs that OPEC will comply with production cuts is giving the market a boost. This rise comes despite a dollar index that once again is challenging 13-year highs. We had another re-opening massacre for natural gas on a questionable change in the weather forecast that is raising suspicions that the weather models in some cases may be flawed. And drivers at the pump are paying their highest start to a year for gas price since 2014.
In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 1/2 to 3/4%. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a return to 2% inflation.
The International Energy Agency agrees with my assessment that the historic OPEC/non-OPEC agreement will put us into a supply deficit early next year and will start to work off the global oil glut. We are on the road to rising demand and lower global production and so, ultimately higher oil prices.
Wall Street looked set to open higher on Monday, with the three major indexes hovering near record levels, supported by higher crude oil prices and the lingering effects of the post-election rally. Oil prices rose about 2.8% to a near three-week high of $47.87 per barrel amid hopes of the OPEC reaching an agreement to cut output. The dollar index's .DXY first drop in 11 days also helped.
Buffy may have her way on slaying vampires, but she has nothing on Fed Chair Janet Yellen when it comes to killing commodities. Yellen’s testimony to Congress basically assured us that the Federal Open Market committee will raise rates in December as the economy is making significant progress.
What will have more impact on crude oil trading today? Will it be news out of OPEC, or the testimony in Congress by Fed Chair Janet Yellen? We know that comments from the Russian oil minister Alexander Novak saved oil from selling off more after he said that he remains optimistic that OPEC can get a deal done by the time of the official meeting on Nov. 30.