Posted on 04/28/2016 11:55:35 AM PDT by bananaman22
Oil prices surged to their highest levels in six months on Wednesday as the Fed left interest rates unchanged. WTI jumped by 2.8 percent to $45.29 per barrel and Brent climbed by 3.17 percent to $47.19 per barrel.
Those are the highest prices so far in 2016 and the oil markets continue to bet on rising momentum for crude. The Federal Reserve added strength to oil when it announced its decision to leave interest rates unchanged, a move that caused the dollar to weaken and oil prices to rise. The Fed also softened its language regarding its concerns over the health of the global economy, which signals a bit of confidence that demand could pick up pace.
The EIA also revealed on Wednesday that U.S. oil production continues to fall. Weekly output fell by another 20,000 barrels per day to 8.938 million barrels per day. U.S. production is down almost 800,000 barrels per day from the April 2015 peak.
But there are still some warning signs for crude oil. While industry data pointed to a decline in crude oil inventories, the EIA disappointed oil traders when it reported an uptick in storage levels. The U.S. set another all-time record, with storage rising by 2 million barrels last week to 540 million barrels.
(Excerpt) Read more at oilprice.com ...
Most oil and gas people I know are unemployed.
It sucks.
Only by God’s mercy have I been able to support my family in this economy.
Unleaded regular passed Diesel in price for the first time in.......a long time.
Ed
$45/bbl is still really cheap for consumers, not really high enough for producers.
But DNR and CNX on pullbacks in a week or so. Metals and minings also fantastic. MT and CENX.
“BUY,” he meant to say. Oil patch stocks way overbought right now, but there will be a very sharp pullback...buy it all up. Going to 50 by May 6th.
I’m guessing there will be a refinery fire pretty soon.
Economies are booming. 0.5% GDP growth is scorching for Obama’s America.
Mexico’s GDP is growing at 2.5%. Mexico.
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