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Trump Offers Little Detail on Fiscal Policy; Oil Moves Lower

Published February 17, 2017
  • The US dollar continued its recovery this morning, easing off a one-week low brought on by hawkish comments from Fed Chair Janet Yellen and strongly positive US economic reports throughout the week
  • Donald Trump offered very little details on tax cuts and spending details during his 77-minute press conference yesterday; most focus was on the new nominee for labour secretary and Trump defending his administration to US media
  • Asian and European stocks are down, as investors are becoming more concerned that Trump will need to get House and Senate approval before implementing any new fiscal policy; US stock futures are set to open lower on this concern as well
  • Oil also moved lower this morning, showing its first weekly decline in five weeks; losses are mostly related to the Energy Information Administration’s statements on US crude and gasoline stockpiles hitting record highs
  • Faltering demand growth for oil in China and India have also kept prices down; China’s slowing car sales and increase in gas/diesel exports are helping slow demand for oil in Asia
  • Data shows rising North Sea oil exports to Asia and investors await the new Baker Hughes’ US oil rig count later today
  • For now, stories of supply increases are countering OPEC’s impressive compliance in their deal to curb production  

Chart (1) Oil Remains Range Bound in $50-$55 Levels