WTI Crude: The FOMC’s ECB Envy. 11Sep

Our economic release studies plotting Q2 FOMC behavior for London & NY Sessions.
Like the ECB effect, the FOMC reactions are noticeably higher in the NY Session v London, 
certainly not counterintuitive given FOMC release time. 

Interestingly, the ECB has had a more significant effect on price volatility 
in WTI than FOMC in 2012 (especially in Q1), (here) & (here).

Of key interest is the shift in volatility during the NY Session 

as a result of the addition of press conference following the statement release.

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Weekend News 08Sep

Another choppy series of auctions this week as the market dealt
with the ECB announcement & US NFP. The Brent-WTI spread 
ended the week largely unchanged from last week’s close at/near $18.31. Following
the rally of the spread toward the April highs in mid August, Brent-WTI has since failed
to make new highs above the $20 area.   
Meanwhile, Brent-WTI correlation was also largely unchanged from last week’s close
at/near (+.55), and USDollar-WTI correlation moved toward neutral closing at/near (-.44)
from last week’s close (-.87). 

FOMC decision is likely key event this week.


Central Banks


Supply/Demand & Markets