The Commodities Review on Energy....Energies
What does a 9.4 million barrel supply increase in a week do to prices? Apparently not much when it is all said and done. The market is on a psychological rollercoaster, torn between Russia and Georgia geopolitical issues, a choppy dollar and a rising supply situation. This market has become dollar dependant. It may appear at times that the oil market pushes the dollar, but with the dollar in the breakout position it is forcing oil's hand and pushing oil lower. With a good shot at hitting 80 by the end of September, the dollar should push oil into the mid-90s. Keep an eye on the weather as there are some impressive conditions off the coast of Africa that could hurl a storm our way, but otherwise this market sector is heading south.