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Oil Prices Up

Oil Prices Up

According to Yahoo Finance, OPEC is in its first joint oil cut with Russia since 2001 as Saudis take a big hit.

Oil prices are up by approximately 8% today. That alone is big news, and has meaning for the global economy and markets. The article also points out the significance of Russian participation in this agreement. This price rise will ripple across our economy, especially in the oil producing areas of our country. It also helps those smaller American exploration, production, and oil service companies that have struggled the last several months.

Smart people can argue and debate the finer points of this, but I just wanted all to know that this had happened today. The end of the enclosed article speaks to some analysts predicting oil rising to $55 per barrel. Since the election, we have had a stronger bid in most equity and hard asset markets. We have had a weaker bid in bond markets. For the moment, these firmer bids in equities and hard assets have a definite feel of markets anticipating growth. We also have the Fed meeting in December, and most think that they are ready to bump up the federal funds rate. We’ll keep you updated!

To learn more about how information like this should inform your investment decisions, feel free to contact us for a free consultation.