Federal Reserve Reducing Bond Buying by $10 Billion per Month

by George Belekos, KPI Bridge Oil
Wednesday December 18, 2013

Ho, ho, ho, big news in the oil market today was that the Federal Reserve will be reducing their bond buying by $10 billion per month to "only" $75 billion. 

This had all the speculators salivating thinking the market is improving and that reduced liquidity and greater demand will increase prices going forward. 

Inventories also came out lower than anticipated which also created inspiration. 

With the Christmas holiday fast approaching, we should continue to anticipate reduced participants in the market greater volatility. 

Bunker buyers should clear their desk of pending stems for the year before we see suppliers complete inventory drawdowns and stop answering their phones. Only seven days till Christmas!

About KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favourable terms.

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