Anytime oil prices dip it’s good news for Americans. With prices expected to rise to over $4 per gallon this year it’s nice to get some relief.
China had much lower manufacturing numbers than expected which sent oil prices down 1.9%. It’s gotta be sustained though or else prices at the gas pump won’t reflect it.
It’s usually at 1 – 2 week lag from oil prices dropping to prices at the pump dropping.
A good gauge of where oil price are is at Oil-Price.net. They show the Brent Crude number which is what the world values oil in not WTI that many Americans use.
This has been a problem since the WTI was still low but gas prices were stubbornly high. The Brent Crude number is the reason. 2/3 of the world’s oil trades on the Brent Crude number.
These Chinese numbers may continue the downward pressure on the Yuan. Adjust your forex strategy accordingly.
