Stocks and Oil Part Ways

Since late October, oil and stocks have tracked each other pretty closely. Lately, however, they’ve parted ways. In the last week, stocks have climbed while oil has fallen back.

Check out this chart:

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There’s an OPEC meeting later this month, and there’s been talk of countries cutting back production. Mostly it’s been talk.

Iran just got off sanctions and they said they’re not cutting production. Then the Saudis said they’re not cutting unless Iran cuts. To me, that sounds like an excuse to say we’re not cutting production. That’s probably what the oil market is responding to.

Posted by on April 3rd, 2016 at 9:40 pm


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