BYE BYE JULY! As we lumber through the Dogs Days of Summer, we are focused on two things: OIL EXPORTS and INTEREST RATES.
OIL EXPORTS have been banned in our country for 40 years. However, it appears exports are returning. This is hot news for the oil industry that is experiencing a historic energy boom. The US has become the largest energy producer in the world and has plenty of product to sell overseas. As oil prices bottom out this summer, we expect the timing is perfect to change our laws to permit our domestic oil and gas to travel abroad for a profit.
Congressional support for loosening the government ban is being led by United States House Speaker John Boehner. “Until recently our nation’s emergency oil reserve policy was rooted in a scarcity mindset that went back to the 1970s,” Boehner told reporters. “But now America is experiencing an energy boom and our policy needs to follow suit.” The House will start working on wider energy legislation when it returns after the August recess. This is something we’ve been focused on for years, and would have such major impacts on all things economic, political and geopolitical. Europe would much rather import oil from the United States than remaining dependent on Russia and Middle East.
More good news came this week from The Federal Reserve Bank, which decided to keep interest rates at zero until at least September. This is exactly what we have been expecting. Moreover, it was a unanimous decision in the FOMC’s statement. Our central bankers continue to see an improving economy and labor market, the only question remains: Exactly when the first rate hike occurs. Our informed opinion is rates will go up before year-end 2015!