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Good news for those who spend a lot of time driving, WTI Crude is down 3.87% for the day, at time of writing, while Brent is down 3.47%. WTI has dropped below the pivotal $70 mark to $69.52 per barrel, which is a 5 month low. I've pointed out in previous posts that OPEC oil producing countries, except for a few such as Brazil, have been cutting production since last April and just recently, announced further cuts, obviously to drive up prices.
Yet, the opposite is happening. The lower prices we are seeing today are more in line with 2021 and early 2022 prices. Is it because non-OPEC members such as the USA have been ramping up production? The Biden admin has managed to add 330k much needed barrels to the SPR, or Strategic Petroleum Reserves so that's a sign.
Another head scratcher is the fact that the U.S. dollar lost almost 3.5 points throughout most of the month of November which should have driven oil prices higher but again, the opposite happened and oil on average, leveled at about $77 for November. Maybe we're seeing a delayed effect?
Still, after bottoming on November 28 at , the dollar is seeing a resurgence and this morning, hit 104. This too could be driving oil prices lower and probably is but what is driving the dollar higher? Is it the news from the Bank of Canada holding rates at 5% which would signal a similar move from the FED? I dunno. I'm no expect so don't listen to me...
As for gold, well holy moly what an incredible ride it's been on these last few days. Here's a snapshot from yesterday. What you see is about $120 of price action, in less than 24 hours, apparently the third biggest ever. At present, gold is hovering near $2,030 after hitting two brand new historical highs last Friday and again on Sunday night.
It's Bitcoin though, that's stealing the show. Looking at the graph on Milk Road's Bitcoin chart, the price sits at $44,024 for a one year gain of 157%. That's amazing. Congrats to those who got in earlier this year when Bitcoin what at what? $15,000 or $16,000? Gone are those days...
Going back to oil, this translates to lower gasoline prices so don't forget to top up over the next day or two and take advantage. You just never know when the powers that be decide it's time again to jack it all right back up. I keep hearing that electric vehicles are piling up in car lots and they're having serious trouble selling them. I guess that means those gas guzzlers aren't going anywhere anytime soon.
That, in turn translates to steady or increasing demand for gasoline. Usually, that means higher prices.
What do I know...
Peace and love to everyone!
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