The International Energy Agency released data today that noted falling oil production in the face of demand that is keeping pace suggesting that the oil markets will come into balance sooner rather than later.
Also, the Saudi energy minister, Khalid al-Falih, remarked that his country is ready to “take any action to help the market rebalance”.
That was enough to produce, “Buy now, ask questions later” in the oil pit and up she went.
Crude oil put in an outside day higher. Whether it holds is anyone’s guess but for now, the price action has confirmed a bottom near $41.20 is in. Oil still needs to close above $44 to kick off another run higher.
Whether or not we can understand any of this, the 200 day moving average seems to have attracted enough buying that the longer term bullish picture remains intact. Price only stayed below that level for two sessions. Now oil is firmly above it once more; it is also back above the 10 day moving average.
Energy stocks are having a big day today and that is helping push the broader stock markets higher yet again.
The S&P 500 scored yet another new all time high. Anyone pulling for a bear market in stocks is going to have a long, long wait based on the fact that this thing will not stay down. Traders seem to be of the mindset “where else are we going to put our money”. “Might as well put in into stocks since the Central Banks are going to keep the easy money flowing”.
Maybe some day the economy will actually catch up with all this euphoria. At least hedge funds and Wall Street are happy; the rest of middle America, especially retirees and seniors are slowly dying a financial death thanks to these abysmal interest rates.
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