Nymex or OPEC… who are you going to believe?
Energy prices were mixed yesterday (Tuesday). Equities were flat, despite U.S. advanced retail sales for August coming in comfortably above analyst expectations. The dollar fell against the euro while gold hit record highs — are traders choosing base commodities over energy? Is this is a sign of risk aversion?
Either way, the crowd is looking for a 2.50 MMbbl draw in crude oil inventories from the DOE. Meanwhile, natty finally crossed above the 4.000 barrier but could not close above it.
Yesterday Abdalla El-Badri, secretary-general of OPEC, stated that the consortium is “comfortable” with oil prices between $70 and $80.
Unlike the hotshots on Wall Street, El-Badri seems to acknowledge the crippling effect high oil prices could have on the economic recovery, which he surmised by saying, “We want to leave things as they are for the time being. We don’t want to see a double-dip recession, as it would affect everybody negatively.”