Screenshot from http://finance.yahoo.com/S&P500 reached new high today since November last year. Oil rose +1.9 percent at $72.68, its highest settle since October. Supply seems to be sufficient, at least for a long while. People have also lowered the consumption as well. Expensive oil probably won't help the recovery of economy as costs of running industries are higher. However, a recovering economy will consume more oil.
Retail sales has improved in May, +0.5%, but it is still 9.6% lower than same month last year. The 30-year Treasury bond auction went well. It means that the government doesn't need to raise interest rates to attract buyers for their debts. Higher interest rates mean higher borrowing costs which would temper recovery of economy.
It looks like that we are going sideway.
1 comments:
Time to buy oil!
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