There's Way Too Much Complacency Surrounding Oil Prices Today
Oil price might be much lower than their 2022 highs, but they're still elevated compared to the past decade. They're also testing a key resistance level, so crude oil could create headwinds for the lower inflation argument.
- Chairman Powell will likely talk a lot about “data dependency” today, but the more important issue in our minds will be whether he take the possibility of rate cuts in 2023 back off the table or not.
- Is there really a big difference for the stock market if the 10yr yield is slightly above 4%...or slightly below it…when the stock market is still quite expensive???
- WTI crude oil is testing a key resistance level. It won’t take much more upside follow-through for crude to put a dent in the argument that says inflation will continue to decline in a significant way this year.