As crude hopscotches back above the $40 level, it is once again being used as a trampoline, propelling prices higher. Despite the Bank of Blighty (England) cutting interest rates for the first time in seven years, the crude complex is shrugging off dollar strength and rallying strongly for a second day. Hark, here are five things to consider in oil markets today.
1) Under the Petrocaribe energy pact, Venezuela is still selling cheap crude to countries in the Caribbean – all the while its own economy continues to crumble. Petrocaribe was established in 2005 by Hugo Chavez to share Venezuela’s wealth, but fast forward eleven years, and the relationship continues to eat away at Venezuela’s main source of foreign income.