I find it ironic that on a day in which the overall commodity sector is getting slammed lower, crude oil simply refuses to fall apart. It is indeed lower but gives no chart signal as of yet that it has topped out. This is the ONE MARKET that the monetary officials are the most concerned about since it is the most visible one for impacting consumer disposable income.
WE had a report out today from the EIA (Energy Information Agency) that stated total US daily oil demand dropped 6.4% last week to a 17 month low of 18.3 million barrels. Included in their classification are even the minor products as well as gasoline, jet fuel and heating oil and diesel.
That is the biggest fall in a year. The soaring prices are indeed choking off demand but unlike the metals, crude has not fallen apart and broken down through its chart support levels.
We will need to watch this to see if it too eventually succumbs to hedge fund selling. Consumers of course would dearly love to see it fall as would the monetary authorities.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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