After WTI passed the $90 barrier with firm determination, as we highlighted earlier, the most recent DOE Crude Oil Inventories numberconfirms that the far larger than expected draw down is accelerating. Asreaders will recall,after last week's massive drawdown of 9.854 million barrels which wasthe largest in 9 years, today's number was another stunner, coming in at5.333 MM on expectations of 3.4 MM. The result: WTI spikes and is lastseen at $90.64. And as a reminder every $1 rise in oil decreases U.S.GDP by $100 billion per year and every 1 cent increase ingasoline decreases U.S. consumer disposable income by about $600 millionper year. The move in oil in the past week alone has almost entirelywiped out the most recent stimulus. Furthermore, as we suggestearlier, now that $90 is in the history books, $100 is coming, and maybe here within a few weeks. At that point Bernanke may have someproblems explaining how he is "100% confident" that the surge ingasoline prices is completely and totally not as a result of hisderanged genocidal tendencies.Don't worry though, hedge fund managersaround the world will be more than happy to afford the surging prices.Remember: wealth effect!
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