The Curious Case Of Post-QE Oil Hangovers
In a strange centrally-planned 'see-it's-only-transitory' trick, crude oil prices have suffered a significant post-coital hangover each time the Fed has engaged its QE-warp drive. As the following chart shows, the current swing lower is ahead of pace compared to the previous two 'schemes' which stopped dropping after 10 days (QE2) and 20 days (QE1). It's almost as if someone wanted to prove that extreme monetary policy does indeed have no inflationary impact on the price of energy - or perhaps its just an over-crowded and obvious pre-QE trade coming undone in a hurry (like stocks?)
Pre- and Post-QE performance of WTI Crude (normalized to 100 on day of announcement)...
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