After a shaky start, equity and energy prices rallied on Monday as trade-war fears seemed to be put on the back burner for the time being, and both asset classes are on the move higher again this morning.
Today marks the 9 year anniversary of when the S&P 500 bottomed out during the financial crisis. The charts below show that while equity and energy prices have been moving in lockstep as of late, they’ve taken much different paths over the past decade despite similar periods of trading in unison.
There are plenty of headline-friendly predictions coming from the CERAWeek energy conference this week. With OPEC and US Shale producers rubbing elbows, there’s certain to be no lack of debate over the future of oil markets.
The IEA weighed in with their annual mid-range outlook yesterday, predicting that US oil production will grow substantially from its record levels above 10 million barrels/day in 2018 to more than 12 million barrels/day in 2023.
While prices try to rally for a 2nd straight day, the balance of the week looks like it will hinge on inventory reports, and the 2nd winter storm wreaking havoc across much of the country. The bad news for refiners is that the storms seem bad enough to keep drivers off the roads, but not cold enough to create a spike in heating demand.