By EconMatters
We could have a bearish slant to tomorrow`s EIA Report, and some profit taking after today`s rally in the Oil Market. API reports 6.2 Million build in Oil Inventories.
https://www.youtube.com/watch?v=0LykOnsgjYc
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Several months ago, just as the market was tumbling on the back of crashing oil prices and not only energy companies but banks exposed to them via secured loans seemed in peril, we wrote a post titled "Dallas Fed Quietly Suspends Energy Mark-To-Market On Default Contagion Fears" in which we made the following observations:
Written by David Haggith - The Great Recession Blog
Just about every major banker and finance minister in the world is meeting in Washington, D.C., this week, following two rushed, secretive meetings of the Federal Reserve and another instantaneous and rare meeting between the Fed Chair and the president of the United States. These and other emergency bank meetings around the world cause one to wonder what is going down. Let’s start with a bullet list of the week’s big-bank events:
Submitted by Michael Lebowitz via 720Global.com,
On numerous occasions over the past year we suggested that U.S. equity valuations were expensive. Certainly the recent sharp rebound in share prices in the midst of declining earnings, lower earnings forecasts and slowing domestic and global economic growth has only strengthened our conviction.
In this article we compare equity valuations and the market drivers of 2013 to those today and outline why we think equities may be the so-called “bug in search of a windshield”.
Following last week's 'biggest inventrory draw in 3 months', expctations were for a 1mm build this week, so when API reported a huge 6.2mm build. Perhaps slightly offsetting this surge is a 1.93mm draw at Cushing (after Genscape forecast a 1mm draw at Cushing this week and expectations were for a 800k draw). After a manic buying day in WTI, oil prices are plunging after hours...
API: