Energy Prices Continue Breakout Rally

On August 23, 2012 by TradingDesk

Global markets are moving higher, following yesterday’s release of the FOMC minutes, which showed that most of the FED governors are ready to provide more monetary stimulus if economic conditions don’t improve in the near future. Meanwhile fundamental data continues to show weakness, with Chinese and Euro-zone manufacturing continuing to contract, and US jobless claims creeping higher yet again.

Energy prices continue their breakout rally, with simmering tensions over Syria and Iran adding to bullish technical and a falling dollar. There isn’t much on the charts to stop prices from spiking to their 2012 highs.

Tropical Storm Isaac continues its slow path through the Caribbean, and while forecasts for its strength and direction continue to conflict, it does appear that it will hit Florida early next week. While this will keep oil production and refining interests in the gulf coast from taking a direct hit, local supply disruptions will be an issue.

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