Weekend News 01Sep

Largely listless trade this week ahead of Jackson Hole &
next week’s ECB announcement/US NFP. Brent-WTI spread moved higher
from last week closing at/near $18.36. The USDollar-WTI correlation saw continued
increase in negative correlation to (-.87) from last week’s (-.13) while Brent-WTI’s positive  correlation declined to (+.57) from last week’s (+.84). The ECB narrative with an increasing negative correlation with USDollar may result in currency movement having a larger impact on WTI movement.

Graphics

Central Banks

Geo-Politics

Supply/Demand & Markets

  • Oil Market Overview With James Hamilton. (Oil Price)
  • Oil Reserves Could Be Tapped If Prices Stay Above $100. (Telegraph)

WTI Crude: The ECB Effect. 31Aug


Our economic release studies plotting Q2 ECB behavior for London & NY Session.
The ECB reactions were noticeably higher in the NY Session v London. 
This suggests in spite of ECB release occurring pre-Pit session, the trading
opportunity resides in the NY Session.
Might next week’s ECB announcement sustain this tendency? 

Compare Q2 with Q1 ECB Behavior (here).

For more information on the ECB & FOMC effects on WTI Volatility,
please visit our subscription page