Unforeseen U.S. Oil Boom Upends Markets as Drilling Spreads
By Asjylyn Loder Jan 8, 2014 12:35 PM PT
>The U.S. oil boom has put European refineries out of business and undercut West African crude suppliers. Now domestic drillers threaten to roil Asian markets and challenge producers in the Middle East and South America.
Well the US government will still be controlled by the Zionists and combining with war monger interest they won’t pull out in any big way. while china having more interest in Middle East’s oil will also keep Uncle Sam’s interest there. anyway I will rather have some bullish view on usd vs euro and particularly northern Europe where they depend on their declining North Sea oil revenue much.
>America’s shale boom is providing an unintended benefit to U.S. government bonds.
With the U.S. economy relying less on oil and gas imports than at any time in two decades, energy expenses for Americans have fallen and cut into inflation more than any other living cost in the past year, according to data compiled by the Labor Department. Economists say consumer prices will rise less than 2 percent for a second straight year in 2014, the first time that’s happened during an expansion in a half-century.
Slowing inflation, which increases the purchasing power of fixed-rate payments, would give support to Treasuries after the Federal Reserve’s plan to curtail its unprecedented bond buying ignited their first annual losses since 2009. Ten-year notes yielded 1.76 percent last month after deducting inflation, close to the highest since 2011. Spending fewer dollars on foreign oil also means that any gain in crude prices no longer leads to a weaker greenback, upending a decade-long relationship that may strengthen the value of U.S. assets.