Day of Rage in Saudi Arabia should prove to be interesting. So far it is very calm, however, with a major portion of US Oil coming from the country---this could spook the market quickly if it gets in gear.
The top five sources of US crude oil imports for December were Canada (2,064 thousand barrels per day), Mexico (1,223 thousand barrels per day), Saudi Arabia (1,076 thousand barrels per day), Nigeria (1,024 thousand barrels per day), and Venezuela (825 thousand barrels per day).
Also, keep an eye toward Japan. With one of the largest quakes in the last 100 years worldwide, it will take weeks, if not months, to access the true infrastructure damage. BOJ has indicated that it will continue to pump money into the economy; however, with interest rate at 0% (and they have been for a long while) how do you inspire growth and lending? What can the pent-up demand be for yen denominated lending?
Bottom line---VERY LITTLE UPSIDE TO ANYTHING!
Todd Hunnicutt
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