Energy – higher as global central banks boost liquidity – lower dollar – all commodities and equities are higher. January crude oil is trading $0.16 per barrel higher to $99.95 compared to $98.84 yesterday at this time. Today is inventory report day and the last day of the month. The energy market was lower until China’s announcement and crude oil is now fluttering near the $100.00 level once again. China Central Bank cut reserve ratios for the first time in 3 years. Following this, global central banks announce a joint effort to increase global liquidity. S&P raised ratings of 2 Chinese banks, but lowered Bank of America, Citigroup, Goldman Sachs, J.P. Morgan, and Wells Fargo in the U.S. Consumer Confidence jumped 15.1 points to 56 in November. This positive economic news follows other positive U.S. economic news as we face unemployment numbers tomorrow. Geopolitical concerns continue to prop up oil prices with European discussion of Iranian oil embargo.
The U.S. is turning into a refinery export business as firm diesel and propane exports are having a significant impact on lowering U.S. product stocks. U.S. exports are likely to make the U.S. a net exporter of gasoline, diesel, propane and other fuels for the first time in 62 years. Domestic demand is falling once again. Last week’s holiday and Black Friday demand may have a positive increase on gasoline demand following the positive shopping news releases earlier this week. Today’s DOE number may shed a light on demand again.
