Slowing Demand and Supply Reassurances Impact Energy Prices So Far This Morning.

On March 20, 2012 by TradingDesk

Slowing Chinese demand, noted by BHP Billiton, and supply reassurances from Saudi Arabia have taken 1% out of energy prices so far this morning. China also announced it would raise gasoline prices by 7%, which again raises the issue that a majority of the “emerging market” demand that has been the driver of so much over the past several years is subsidized, putting the burden of high prices squarely on the governments’ shoulders. Price hikes in 2008 contributed to the eventual collapse in prices, we will see if they can do the same in 2012.

After failing to break upside resistance yesterday, products remain stuck in their trading range with a neutral technical outlook. Global equities are slipping this morning, which will probably dictate direction until energy can find a new trend to follow.

 CLICK HERE for a PDF of this morning’s charts

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