With crude oil’s growing supply-side dominance, and US equities continuing on a near-historical run, Darren Sinden – Market Commentator for Admiral Markets – joined Zak Mir and James Hughes in the Tip TV studio to discuss if either of these are coming to an end.
Oil and fracking playing a dangerous game of chicken
West Texas Intermediate (NYSE: WTI) crude prices are down 20.2% over the past year, but with production being cranked up, and OPEC reaching a 3 year production spike, Darren Sinden believes that oil prices could challenge as low as $25 dollars a barrel in the near future. As fracking starts to challenge the dominant fossil fuel, the response from oil-dependent countries has been an attempt to price them out of the competition, and compensate for overall losses.
S&P 500 hinting at a break in trend?
While US equities are on a bull-run lasting 2354 days (the 3rd longest run in history), several predictive measures that Sinden highlights are starting to show cracks in the climb. In particular, the percent of stocks from the S&P 500 that are involved in the bull-run has been declining since late 2013. Despite people paying into US indices as a “safe bet”, there’s uncertainty over where the equity market will go next.