Posted on 02/03/2016 11:48:47 AM PST by Citizen Zed
U.S. stocks attempted a massive comeback on Wednesday as oil prices recovered.
West Texas Intermediate gained about 8 percent higher in choppy trade after the Energy Information Administration said U.S. inventories rose by 7.8 million barrels last week. Crude prices briefly erased gains following the data release, but surged on a weaker dollar. The dollar traded 1.77 percent lower against a basket of currencies, with the euro gaining 1.5 percent against the greenback, as weak U.S. services data suggested another Federal Reserve rate hike seems more unlikely.
"I ... believe oil will dictate stock prices," said Peter Cardillo, chief market economist at First Standard Financial. "I think it's safe to say we are highly dependent on oil."
(Excerpt) Read more at cnbc.com ...
And gas will magically jump 25 cents a gallon tomorrow
While it was dropping 1 cent a week since the so called “collapse”
I bought some ES future call options right before the market jumped. I kid you not about this. I walked away to do something. It wasn’t long. And the thing had gone from down 20 to positive in a really short time frame. I am usually not the lucky. One heck of a short squeeze.
Oh great......gas prices going up......oh and don’t forget the supermarkets are going to raise the prices of goods because of the increase in gas prices. No way do they lower them when gas is down.
the sad thing is we’re so used to being screwed we take it with a few curses and move on.
Dow up 300+ off of 10 am low.
In geopolitical terms...
Europe: “Hey US, Iran has blocked the straits and fuel costs are going through the roof! What are you going to do about it?”
US: “Well, you know we have good prices on our oil. In fact we have a special sale on right now!”
It is looking like another “inside day” as we approach the close. We won’t make up yesterday’s down day.
Massive comeback?
Looks like the rise in oil prices (in dollars) was due to a drop in the value of the dollar today, and the expiration of a huge surge in options from last year.
US inventories of oil rose to a record level this week. The fundamentals of supply and demand for oil have not turned around.
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