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Part of this story let's bring in a guy who has watched these markets for years he knows them well Phil Flynn is the senior market analyst at price futures group of Fox Business contributor.
You cannot ignore the jump in oil today but you also have to look at the Japanese equities that is it all Israel and the Palestinian conflict or is some about the positive -- that we're seeing that we may see little bit better growth.
I think it's better -- to be honest with -- there is no doubt the Israeli Palestinian conflict put a floor under these prices but today's rallies with about much much more.
I think we're back to focus team and the fiscal cliff -- back to focus in on the possibility of the deal what that means more oil demand going forward.
You know in fact particularly to dampen oil traders really have to look at the situation what's happening with the -- that's -- traders were so.
I'm worried about this potential conflicts that they didn't know how the new president in Egypt.
Obama warning was gonna act.
Well now it looks like he could be brokering a cease fire with Israel from the vaccines and that does take away the risk that this conflict is going to go.
A lot further OK now -- I have heard from a lot of traders -- well traders saying look if this was a long term trend.
Of a pop to the upside and oil we would see.
Oil up 8% I -- it was it was a healthy Bob today a couple of percent but.
But it would be much higher we would be in the 100 dollar a barrel range if in fact this is a long term -- -- those tensions in the Middle East -- because this.
This bump was not higher we may see it settled back in the low eighties what he stated that.
-- absolutely if we really thought this war was gonna happen it was -- expand we would have been up maybe ten dollars a barrel today I think we would have seen an explosive vote.
But the odds are right now we're gonna have a cease fire and it's not -- impact -- oil shipments at all.
What we're looking at right now is economic growth.
This is a seasonal bottom for the market today and another thing that was really driving prices is the reports -- very cold weather hitting Europe right now.
That drove the gas oil market in the heating oil market so this market was not alone this rally -- -- all about Israel and Palestine.
Was about better economic growth -- more oil.
Well that's what the bright you -- because I knew that you be able to really answer that people get all hyped up but it's important to note that neither Israel nor the -- sister produces oil and heavy rock but that's meaningful and also.
That which brings us to them a single question inventories you know how how historically -- we stacking up on supply at this point in the United States.
Well depends on what you're looking at if you're looking at whale we are at about the highest level we -- and many many years we have plenty of whale.
Downing Cushing Oklahoma and we have more oil coming in every day you know the key is getting into the areas of the country that need -- like the East Coast that's going to be the movement in recent years we still have those problems because -- hurricane CNB imports are gonna be down that's gonna -- the situation.
In in the coming weeks you're gonna see a lot more demand out of the East Coast as we rebuild new York and New Jersey so that's going to be -- used.
What do you back to the Palestinian area actually in a weird way the way this is playing out might actually be a good thing for the region we were very worried that.
The Muslim Brotherhood when they were in charge of Egypt which slammed the -- you know try and the start a war.
With Israel it looks like that isn't gonna happen it looks like the new president of Egypt has more interest dead.
I you know and -- work.
Then he decided how -- mean that in weird way to get that they'll lose US money if they do -- They obviously care more about my right so rather than fanning a slight rise Phil -- for a little cold water on of these motions thank you felt good stuff we appreciate -- thank -- -- for.
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