OPEC deals in BRENT (BNO, quote) not WTI crude and this is the benchmark to watch if you think the Egypt situation is spiraling towards a Suez Canal shutdown. Additional middle east tension, Syria, Turkey, Iran…these all play into the supply disruption trade that really hasn’t taken place yet, but getting closer to breakout levels.
During the overnight Asian session crude oil began to lose its footing and accelerated its slide during the early morning U.S. session heading into the weekend. Crude oil continues to fall more than 2.75% as of this story despite better than expected Initial Jobless Claims report.
Petrobras (PBR, quote) announced that the company is boosting cashflow-negative and loss-leading gasoline imports at their fastest pace ever in attempt to hold down prices for alternative fuels, while trying to block investment in alternatives, or at least make investments in these kinds of products– namely, ethanol — unattractive.
Russia has the seventh largest gold reserves in the world, and overseen the largest buildup of all the major players in the last year.