NKE and Oil - Is there a Correlation?

This week the market blew past its losses for the year, oil climbed to new highs for the year, and, well, the breathless media continued its sycophantic fawning over you know who. TGIF.

  • The Nike shoe cinches up when the heel is weighted, and it can be tightened or loosened at the push of a button.

OMG! Smart shoes have arrived? What’s next, auto-button shirts? Like I can’t figure out how to line up my shirt buttons correctly. Okay, so maybe auto-button shirts make some sense. 

How is it that we have the intelligence to create smart shoes and, hopefully, auto-button shirts, but oil traders push prices higher when it is clearly doomed? Speculation – the price of oil for delivery today is lower than prices in future months based upon futures contracts (contango).

  • Three months since the U.S. lifted a 40-year ban on oil exports, American crude is flowing to virtually every corner of the market and reshaping the world’s energy map.

America shipping oil everywhere can’t be good for the oil cartel. Given this, a simple question arises – why would the cartel cut production when market share is at stake? Maybe oil goes up this week, but next week, or the week after, it falls again …

The “Duh” Quote of the Week

  • “I don’t think there is a more ideal country for renewables than Saudi Arabia, given its abundant sunshine, available land and plentiful sand, which is needed for making solar panels,” Saudi Oil Minister Ali al-Naimi said.

Saudi Arabia is moving into the renewable energy market? Imagine that!