Monday, January 19, 2015

DOWNSIDE PRESSURE

https://sp.yimg.com/ib/th?id=HN.608049777640735915&pid=15.1&P=0 
 U.S.markets were closed for the Martin Luther King holiday but that didn't stop oil futures from declining.

NEW YORK (MarketWatch) -- ICE Brent crude oil futures for March delivery lost $1.33, or about 2.7%, to close at $48.84 a barrel on Monday during a session when U.S. markets were closed in observance of Martin Luther King Jr. Day. The London-traded benchmark is now down 57.5% from its 52-week high of $115.06 in June, and has fallen during 13 of the past 17 sessions, according to Dow Jones data. Brent crude is down 14.81% in 2015.

It will be interesting to see if New York follows suit when things get back to full stride Tuesday.  

With all the downside pressure on oil prices one could postulate much of the pressure that goes into the fracking business is being pumped in another direction.

Just where the point of equalization is, nobody knows. But there will be one, that much is clear.


No comments: