Today sees the impact of Iran signaling to the world that it is ready to halt its nuclear program. Cushing inventories are at all time high and the Fed has opened the door for further monetary easing. The points which gathered the media’s interests today are:
Ben Sharples of Bloomberg highlights the recent events of Iran’s dialogue with the Western powers. On Russian insistence, Iran is considering to halt its nuclear program. However the precise direction of this diplomacy will be seen when whether EU sanctions are implemented against Iran in July or not. There are also reports coming from experts that $100 a barrel is here to stay and while prices might soften up, they will not collapse.
Francis Kan of Reuters reports that Brent held steady with optimism about the US economy offsetting the high US Crude Oil supplies. U.S Federal Reserve said on Friday that it is willing to support the economy and this opens the option of another round of monetary easing. The spectators saw this as a possible indication of increase in future energy demand. In the week up to April 20, crude stocks rose to level of 4 million barrels while 2.7 million barrels were expected. The data on unemployment claims and house sales by US is eagerly anticipated. The euro debt crisis might see a new episode by the Dutch government collapsing over budget plans.
Chris Kahn of Bloomberg Business week explains that Federal U.S Reserve expects the US economy to grow between 2.4%-2.9% up from the January forecast of 2.2%-2.7%. Although the crude oil supplies in Cushing are at near record levels, this is expected to fall from May when the Seaway Pipeline begins to carry oil from Cushing to the Gulf Coast. This might eliminate the supply gut and even cause future oil prices to rise.