Stocks opened the trading session on the downside but turned green after “amateur hour” (defined as the first trading hour of the day) and closed on an uptick. The Dow finished the day up 39 at 24,640. Trading volume continued to be light.
Changes are afoot in the oil and energy markets. The International Energy Association or “IEA” had some interesting comments when they said “US producers are enjoying a second wave of growth so extraordinary that in 2018 their increase in liquids production could equal global demand growth," the IEA also noted that this event could soon spark another dramatic change of policy from leading oil producers, currently sitting on "shut-in production capacity and facing a renewed challenge (don’t you mean “renewable challenge”) to their market share." US WTI crude oil continues to trade slightly under $60 per barrel and US natural gas is holding steady at a recent low of $2.59 per MMBTUs.
Meanwhile south of the boarder, Venezuela’s oil output hit its lowest level in 30 years and this is forcing the state owned PDVSA to turn to Russia for crude supplies for its refineries. Wow.
A recent article in the Seattle Times brought out a WTO court ruling expected sometime this spring between Boeing and Airbus which has been brewing now for 15 years. The article highlights the history of this story but the real issue could be what happens in the future if a decision against Airbus sparks a tariff and trade war with the US. Find the article on our Facebook page as this event could have an impact on global trade, the US economy and the US markets.