Today with the US dollar Index breaking through 100 (as we thought likely) for the first time since 2000, commodity prices are back in the melt seat.
This clip offers a good discussion of what happened to the confident forecasts of peak oil (and gold and silver et al) theorists; who has some of the least profitable crude to produce (hint: Canada), and just how low can crude go?
Edward Morse, Citi commodities research, discusses what’s driving oil price lower as the commodity wanders further into bear territory. Here is a direct video link.
Earth to stock bulls, it’s not just high yield debt and commodities that are likely to move lower…
“Oil is going back to test its low. … We’re going to hold the low or not. If we don’t hold the low, the selling will accelerate. We’re either going to hold it or break it next week. … If oil breaks to a new low, you have to take it as a negative for the (stock) market.”
–Andrew Burkly, Equity Stategist, Oppenheimer Asset Management, March 13, 2015.
;
