Energy Prices Remain In “Wait and See” Mode Pending Central Banks Actions

On July 30, 2012 by TradingDesk

It’s Monday of central bank week, and markets are biding their time, waiting for the announcements from the US FED (Wednesday) followed by the European Central Bank (ECB) and Bank of England (BOE) Thursday. After last week’s comments by the ECB president sent US Stocks up 3.5% in two days – to their highest level since the sell-off in Early May – most global markets are taking a small step back today. The Euro is dropping after reports showed that Spain is slipping deeper into recession (GDP declined .4% in the 2nd quarter) and doubts began to surface that Super Mario could back up his pledge to save the Euro.

Energy prices remain stuck in “wait and see” mode, with buyers hesitant to hold product prices above $2.90 and WTI above $90. While the seasonal trend to rally into September, and tensions in the middle east continuing to escalate give a slight edge to higher prices, this remains a market obsessed with the banks, and this week’s announcements will likely trump all other factors.

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