By Timothy S. Snyder, Matador Economics
Markets are still sideways as tariffs loom and sanctions grow. Yesterday’s trade showed crude oil adding just 30 cents per barrel in the West Texas Intermediate and just 38 cents in the Brent.
Expectations for weakening economics within the U.S. over the next few months have futures leaning neutral to lower. This is a result of expectations on tariffs and indecision as to whether they will hurt or help the U.S. economy.
I am not one of those economists that point-blank opposes tariffs. Many of us believe the negotiating tactics merely shorten the timetable to get a desired end result. Allowing time to play a part in negotiating tariffs, to level the international trade playing field, would continue to allow the U.S. economy to move into troubling territory.
Balancing the U.S. trade deficit is a first step, and it’s one of the easiest steps to take to reducing debt. It also forces spending in the U.S. back in line with the government’s annual needs; not to mention “Not” adding to U.S. debt of over $36 trillion.
The U.S. has sanctioned Indian transportation firms that continue to ship Iranian oil to India. Stay tuned, as this is beginning to heat up!
Last night’s Retail On-Highway Fuel Prices showed gasoline dropped 2.3 cents per gallon with diesel fuel rising 2.0 cents per gallon. As we are just a couple weeks from Spring Break, it’s the time of the year that demand begins to build and at the end of March, we’ll see the change to the summer blends of gasoline.
U.S. winter weather
Warmer and foggy in the South Central U.S. The East coast will begin to warm up, and that will push north throughout New England. Northwest will see strong winds and rain, Southwest dry!
Market drivers for today
- Indian transportation firms get sanctioned for shipping Iranian oil
- Trump wants to restart the Keystone XL Pipeline. Won’t be easy
- Retail Gasoline price fell 2.3 cpg, Diesel price rose 2.0 cpg
More energy commentary is available at www.matadoreconomics.com
