Japan's Shinzo Abe Calls Snap Election

By Oil FOXBusiness

Oil prices are trying to find a reason to end the sell-off, looking to global central banks to try to stimulate demand. After getting slammed day after day as the global economic outlook continues to weaken, oil will look to Japan and Europe to provide the support that the Organization of the Petroleum Exporting Countries (OPEC) just can’t seem to offer.

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Japanese Prime Minister Shinzo Abe on Tuesday called a snap election to postpone an unpopular sales tax rise, a day after data showed the economy had slipped back into recession. The market was expecting the move. But the postponing of the tax increase will demand new legislation and to do that he wants to establish that he has the mandate to do that, he wants to have a new election.

Shinzo Abe is not as popular as he once was, but he knows that his opposition is in disarray and does not offer any better ideas so he continues to go for broke both politically and economically. God help him.

European Central Bank (ECB) President Mario Draghi also is saying that Europe is not done and suggests that the EU could purchase sovereign bonds. He said the ECB is unanimous in its commitment to using additional unconventional instruments if needed and if you look at the recent sell off in oil it looks like it thinks it is needed.

Yet will that be enough? Oil prices have a lot on their plate. Not only do you have a dysfunctional OPEC cartel showing no signs of cutting production, U.S. oil on average is at the highest level since 1986, according to the Energy Information Administration.

Mother Nature is trying to support oil and natural gas as it continues her arctic rampage. It looks like the key Plains and Midwest natural gas demand areas will see temperatures barely make 20 degrees. Natural gas looks like it is poised to retest 4.540 high seen earlier this month with a shot of hitting 5.000, assuming we don’t thaw.

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Price Links Video series gives insight across the financial spectrum. https://www.youtube.com/playlist?list=PLDq9JQANqxRxCBaHqunzBT4Frxitjw-XV.

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