The &P 500 closed within a nose of 1400 on Thursday and the price of oil moved up along with them. Risk must be back on or something. Equities rose as the economic indicators in the U.S. continue to look like something out of the basement of a cabin in a horror movie, but everything is great, Apple’s(NASDAQ:AAPL) selling iPhones to China. Not that there’s anything bad about that…. for Apple and their customers.
The thing everyone should be worried about is that since February 29th the Fed and its cronies in the financial media and the U.S. government have been trying to downplay the economic situation around the world while trying to prop up the U.S. economy at the same time in order to keep Brent crude prices from going to the stratosphere. The best they’ve been able to do is to get the price down from the $125 range to the $118 range.
Brent futures, released from April’s options, rose back over $119 to close on the close on the Globex Thursday afternoon at $119.48 per barrel. This sent gasoline futures back up slightly which are now trading in a very tight range between $3.10 and $3.20 per gallon. And I’m sure the O-bomb-Ya administration likes it like that for now. Gas prices are free to go ballistic after the Detainer-in-Chief is re-elected in November.
So, if you are in the U.S. and have any room left on your credit cards I’d say at this point go nuts. You may never see gas prices this low ever again.
WTI crude prices are irrelevant to the gasoline equation but they are creeping back towards the $105 per barrel, spending most of Thursday over $104.
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