Cheap Oil, The U.S. Dollar & The Deep State
Submitted by Charles Hugh-Smith of OfTwoMinds blog,
All this is to suggest that those expecting a major weakening in the USD to push oil higher shouldn't hold their breath awaiting this outcome.
You are here
oil
"Output Freeze A Joke", China Demand To Fall, And Other News That Should Be Moving Oil
In this bipolar market, where only momentum, liquidity, technicals and short squeezes matter, as well as the occasional kneejerk reaction to a flashing red headline (usually some lie out of Venezuela or Nigeria about an imminent OPEC meeting which has not even been scheduled), one thing that no longer seems to have an impact on prices is actual news and fundamentals.
"The Commodity Rally Is Not Sustainable" - Goldman Is Now Waiting For The Next Move Lower
As noted yesterday morning, "Goldman does it again" when just hours after Goldman said the "bearish cash for iron ore was intact," the commodity recorded its biggest surge in history crushing anyone short, and soaring 20% across the globe.
OPEC Ministers Now Resorting To Outright Lies In Desperate Attempts To Push Oil Higher
The key (recurring) catalyst for today's early spike in oil, was the latest desperate attempt by an imploding OPEC member, this time Nigeria to push oil higher when overnight its petroleum minister Emmanuel Kachikwu said that key members of OPEC intend to meet with other producers in Russia on March 20 to renew talks on an agreement to cap oil output, Nigeria’s petroleum minister said.
The headlines in question:
JPMorgan Goes Underweight Stocks "For The First Time This Cycle", Says To Buy Gold
Less than 24 hours ago we presented the latest reason by JPM's Mislav Matejka explaining why the equity strategist refuses to buy this market, to wit: "equities are down ytd, but notably the ’16 P/E is not much cheaper today than it was at the start of the year. In fact, for the US, the P/E multiple is currently higher than it was on 1st January, at 16.8x vs 16.6x then."