Fed says stimulus wind down to begin ‘relatively soon,’ leaves rates unchanged

The Federal Reserve laid the groundwork Wednesday to begin winding down shortly the massive stimulus program it embarked on to rescue the economy from the financial crisis. As expected, the Fed also unanimously declined to raise interest rates this month. After its two-day policy meeting, the Federal Open Market Committee released a statement containing key language that points to starting the move in September. At that time, the central bank will begin rolling off the $4.5 trillion portfolio...
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Global Rig Count Suggests An Oil Price Rally Is Near

Like us humans, it seems that oil markets have two ears. Going in one ear, is the squeal of the resurgent U.S. oil industry. In the other ear, it’s loud chatter about whether or not OPEC and friends are complying with production cuts. In between the ears, in the minds of the traders, the price of a barrel of oil reacts to every sound, most recently tumbling on the back of a noisy EIA report. Occasional bullish shout outs of unrelenting consumption growth, scary geopolitics and declining produ...
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North American rebound pulls oil prices lower

The continued rise in energy sector activity in North America pushed crude oil prices toward their second straight day of losses early Tuesday. Crude oil prices are holding steady above $50 per barrel in response to an effort from the Organization of Petroleum Exporting Countries to balance the market through managed declines. The recovery has brought idled oil and gas companies back to the North American market after last year's downturn pushed many players toward the sidelines. Oilfi...
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U.S. supply levels drag on oil prices

 Crude oil prices move lower on signs of a large build in U.S. crude oil inventories, suggesting some supply-side pressures are re-emerging. File photo by Monika Graff/UPI | License Photo Feb. 8 (UPI) -- Emerging signs of supply-side pressures building in the United States pushed crude prices lower for the third straight session early Wednesday. Crude oil prices moved lower Tuesday after oilfield services company Baker Hughes reported a monthly increase of nearly 8 percent in e...
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Analysts’ Estimates for Crude Oil Prices in 2017 and 2018

By Gordon Kristopher  Bearish drivers Market surveys estimate that US crude oil production will increase in 2017—compared to 2016. Also, implementation of Trump’s energy policies could increase US production and pressure crude oil (USO) (ERY) (PXI) (USL) prices in 2017. For more on crude oil’s bearish drivers, read Part 1 and Part 4 of this series. Bullish drivers  Bernstein Energy reported that global oil inventories fell by 24 MMbbls (million barrels) to 5.7 billion barrels in 4Q16—c...
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U.S. dollar and bond yields lower, stocks up after jobs report

By Dion Rabouin | NEW YORK The U.S. dollar headed for its fourth straight weekly loss and bond yields fell on Friday after wage growth slowed in the monthly employment report, suggesting the Federal Reserve may not raise interest rates again soon Stock prices rose though on the creation of more jobs than expected in the U.S. Labor Department jobs data, while President Trump's executive order to review banking regulations introduced after the 2008 crisis also boosted financial sector stocks...
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Shale Oil Makes $70 the New $100

It shows Wood Mackenzie's projections of breakeven oil prices for new wells in North America's shale basins and the Gulf of Mexico. The first thing to notice is that, on average, it makes sense on paper to drill almost anywhere. Reality is a bit more complicated. As we discussed in this earlier column, all-in costs for exploration and production companies include things like general and administrative overhead and interest charges, all of which must be borne by the barrels they produce. I...
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Oil slips as more U.S. drilling revives glut concerns

A pump jack stands idle in Dewitt County, Texas January 13, 2016. REUTERS/Anna Driver More By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices fell on Monday as news of another weekly increase in U.S. drilling activity had oil forecasters concerned that production cuts from other producing nations may not reduce the global supply glut as much as had been hoped. Global benchmark Brent crude oil prices settled down 29 cents at $55.23 a barrel, while U.S. crude futures settled d...
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Trump Takes Aim at King Dollar and It Threatens U.S. Equities

By: Luke Kawa and Sid Verma Bloomberg The S&P 500 has a friend and a foe in King Dollar. The greenback is the only major currency whose current strength has coincided with rallies in its domestic equity market, according to Goldman Sachs Group Inc., underscoring the risk for stocks if the dollar's poor start to the year gathers more steam. “Recently, the dollar is alone as a major risk-on currency, gauged by looking at the rolling correlation of S&P 500 and USD,” writes a team led by...
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