With the unofficial end of summer upon us, another economic headwind has accompanied the sharp rise in rates over the past ninety days- the seemingly unexpected and sudden surge in oil prices. As with the march higher in market yields, the rise in crude oil has been ushered in by the durable resilience of consumer spending and economic activity in the United States, and further bolstered by record high demand and lower inventories in many locales around the globe. Indeed, a weekly report compiled by the U.S. Energy Information Administration (EIA) released today revealed that U.S. crude oil stockpiles plummeted by 6.3 million barrels to the lowest level since last December during the week ended September 1st, and that exports are running at the fastest pace in nearly two months.
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