Brent Hits All-Time High in Euros, WTI Pushing Against Highs

On the worst day in the equity markets of 2012 where we finally saw volume return in a meaningful way nominally because the markets were spooked by the latest reversal in the Greek Tragedy of the Common Market (Hint: It’s not fixable) and the EURUSD dropped like Wily E Coyote after he looks down, Brent Crude Futures hit an all-time high when priced in Euros, 92.904 euros/bbl.

The price in USD wasn’t too shabby either, closing at $117.35.  What I want to know is just how the PIIGS are supposed to grow their way out of their debt problems with oil at record prices in the currency they are not allowed to leave?  With the relentless sabre-rattling of the US and Europe against Iran and the Iranians responding by cutting off oil trade with 6 European countries (notably Greece, Spain and Italy) does anyone else get the feeling like this is all somehow being coordinated and planned to plunge the EU-periphery states in as much chaos and strife as possible while decrying default as somehow, someway being worse?

A quick look at the price chart for West Texas Intermediate crude reveals prices traded at today above $102/bbl to be very close to a breakout of the current trading range that has been in place since November.  A weekly close above $103/bbl would have to be a signal that oil will be moving much higher as Spring gives way to Summer and the a whole lot of plans of the Technocrats and their enablers in Brussels and Washington begin to burn.




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Tom Luongo

About Tom Luongo

Tom Luongo is a professional chemist and self-taught economist who has been following and trading stocks for nearly 12 years. He has no formal ties to the financial industry and considers that an asset in his analysis of the interplay between monetary policy and capital markets.

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