• [stock-market-ticker symbols="AAPL;MSFT;GOOG;HPQ;^SPX;^DJI;LSE:BAG" stockExchange="NYSENasdaq" width"100%" palette="financial-light"]

    Oil Moving Higher Real Measure Of Economic Recovery

    May 20, 2020
    Oil Moving Higher Real Measure Of Economic Recovery
    Oil pumpjacks near Dickinson, North Dakota, USA
    Image by Acroterion

    Stock market indices in the U.S. broke through resistance at near-term highs again today after bottoming in March; the S&P gained almost 2% at time of writing, pushing close the psychologically important 3,000 level. As we wrote yesterday, many analysts believe the market rally is entirely a function of stimulus and quantitative easing (printing lots of money) by the Federal Reserve, however other indicators point to real indications of recovering economic growth.

    The primary example of this is the price of crude oil rising on international markets after going into negative contango only weeks ago. Today West Texas Intermediate and Brent crude are both up approximately 3%. Oil rising means markets expect higher economic activity and hence higher demand. This is real optimism for economic growth.

    EIA Crude Oil Stocks Change (May 15) printed at -4.983M vs 1.151M consensus estimate.

    After driving down the Eastern Seaboard over the last week, we can definitely say the South is opening up and humming economically.



    CDM Staff

    The mission at Creative Destruction Media is to be the catalyst for the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one."
  • Subscribe
    Notify of

    Inline Feedbacks
    View all comments

    […] Oil Moving Higher Real Measure Of Economic Recovery […]


  • Subscribe to our evening newsletter to stay informed during these challenging times!!