Oil is holding above $86 a barrel. And yet analysts still cling to the notion that oil should be driven by the
Here’s a quote from a report from
I’m not sure how Commerzbank comes to the conclusion that oil prices are somehow not connected to fundamentals, but, instead, are connected to the stock market. But this stance is highly suspect.
Oil has proved it can trade independently from the U.S. dollar. That’s a far bigger catalyst than the stock market, because it affects oil’s relative value.
And besides, the
There is one analyst who at least understands the implications of oil at $86. Olivier Jakob of Petromatrix, says:
The economy recovery of 2009 was fueled with crude oil at $62 a barrel, not at $90 or $100 a barrel and we fear that the latest run on (the Nymex contract) will be the kiss of death for a global economy that was trying to avoid the possibility of a double-dip recession…
Higher energy prices will soak up cash that might otherwise be spent on goods and services. That’s not good for an economy with nearly 10% unemployment.
The Greek bailout story isn’t over yet. It’s like a bad horror movie, where the bad guy just won’t die. Market News International is reporting that
I had to read that article a couple times, to make sure I got it right. Wasn’t it
This new twist has hit the euro and sent the U.S. dollar higher.
It may not seem important, but don’t overlook the fact that
This move may be beneficial to the
Clearly, high unemployment is keeping a lid on wage inflation, the Fed’s favorite measure of inflation. But if gains in nonfarm payrolls continue, it will mean
The coal stock in the Energy World Profits portfolio is ramping 10% today on an analyst upgrade. It’s up 39% since I initiated a buy on the stock, and I expect at least another 30% gain in the near future.
I continue to believe that energy and oil stocks are a must for any investor. If you haven’t checked out Energy World Profits, you can do so HERE.