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The 4 Factors Driving Next Year's Oil Markets

The 4 Factors Driving Next Year's Oil Markets

Authored by Stratus Advisors, via OilPrice.com,

With earnings season in full swing, we thought it helpful to outline what we are looking for in oil and gas production and refining company statements and earnings calls. Several key topics will dominate oil markets next year, and how companies are thinking about those topics now will likely play a large part in determining their strategic success next year.

"Both Cannot Be Right" - The Yield Curve's Ominous Message: Something Is Very Broken

"Both Cannot Be Right" - The Yield Curve's Ominous Message: Something Is Very Broken

Two weeks ago, Deutsche Bank's credit analyst Aleksandar Kocic explained that with the yield curve becoming increasingly flatter, the Fed has roughly two more rate hikes left before it loses control as the curve first flattens completely and eventually inverts, a precursor to virtually every historical recession. As the DB strategist explained, given where long rates are the "Fed appears overly hawkish – it has only two more hikes to go and, for volatility and risk premia to reprice higher, the gap has to widen.

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