May light sweet oil crude futures expire on April 17th, or today. If I'm correct, we'll see oil prices in June numbers tomorrow, which means it'll be above $70 unless oil prices show a huge drop(unlikely) This will likely spook the markets. Am I right?
S&Ps went sideways to higher on the last run up to $70 in December/January, and higher in the prior oil run-up in May/August 2005.
I'm no expert here but the market seems to be getting used to higher oil prices , first quarter data doing ok - what might slow the markets are the companies' outlooks or forecasts within a higher borrowing cost environment. Citi posted nice earnings this morning.
Both of you may be missing my point. I'm not saying that higher oil prices will be bearish for equities(though in the long run, they'll force interest rates higher, which is bearish for equities), but that tomorrow, due to a new contract being traded and quoted as "light sweet crude oil's price" and the price being above $70, it may spook traders for the day. I was wondering if such a psychological effect may take place.
4)óⰠBN 5:24 Oil Rises to $70 in New York on Gasoline Demand, Iran Standoff already getting those headlines this morning