Aug. 29 - G7 nations are calling on the IEA to raise oil output, and threatening to tap strategic reserves if they don't get their way. Hurricane Isaac and Ben Bernanke also very much on traders' radars.
Oil prices are falling after the G-7 countries are vast oil producers to raise output. But is this just pure politics from Washington ahead of November's election -- But aren't put it on other US central -- -- while traders to grapple with this week. I'm Jamie medieval and this is today's market pulse on joined here in the studio mode by -- -- energy -- of Chris Johnson. Chris good to see you again I -- G-7 countries calling for more supply. Will that Colby. Be accepted. It might well be heat is. The G-7 countries. Very very worried about the impact on the the Clinton economy of oil prices you have to remember that every major recession since the Second World War has been. At least. Stimulated or supportive to war -- deepened by a sharp rise in oil prices 73. A T ninety. And -- the last -- as. And I that it will not to be repeated spots it's worth remembering that central supply demand isn't that -- Oil stocks for example and the US energy administration response that the US government that says. That so oil stocks by the end of this year should be. Near the top where it's been kotsay for the last decade. I would suggest then this is as a sentiment within them pure politics from from these well. Possibly a cynics might well say say it. Certainly. What the White House does not want oil prices. Well I was. Four dollars. As it -- it's the election in November that's one thing. And there is. Also I think a feeling that they want to make sure that the Iranians -- there innate thing fierce battle with annual market for the moment. Dates. Hopefully to the the depression that sanctions -- but having very high oil prices so that's another fact. Other fighters that have got I am. And an oil price sent me this week how to tonight that. Ben Bernanke speech at Jackson Hole on fourth which suggests that places me be. -- -- Yet there's an upside risk from both without any doubt they -- -- downside risk group for example it is possible. That it's the the White House could see. Disruption to oil facilities in the Gulf of Mexico isn't it as a good reason to release oil stocks. On some -- market course that would be very negative fuel prices. Increasing supply but there is a very. The great potential of the movement total crisis from. The release of much more capital into it into asset markets and if we get QE3 quantitative easing round three. Then that could be expected to push up asset prices very dramatically has done. -- -- and QE2 you have to remember penalties if so why not QE3 and certainly that -- invest its own right to expect that as a possibility. Just done a couple of -- technical levels were about right now the 200 day moving up its humble pranks on nymex. But right now and specially in print right now and what traders telling you. Well the momentum in the market over the last dale -- has been -- will be -- pushed up on Monday about towards the yeah. 115 dollar battle lifelong friends of the -- and we seem to be pinned between 115 and the 200 day moving average spread which is somewhere between. 111. To 112. On. It all depends I think on what happens on on Friday. If Ben Bernanke pools QE3 after the hat then it's it's going to be very bullish market for one. If that's the case that you and I -- and expect economists. And analysts have raised of FaceBook cast of just got the looks of it. Poll the latest poll month to pull in all places on that they have done just -- the slightly increased. The forecast. Yes analysts are expecting oil prices fooled -- it this year and next year to average. Around a dollar a barrel more than they would have expected -- a month ago that this reflects real prices being 67%. Higher and now than they were a month ago. So you could argue the economist -- -- -- just -- -- problem given forward guidance you may say I couldn't post the comment. Of course not just thank you very much my finds this -- those energy and it's up Chris Johnson. The assault must another I'm -- media about this about a.