As this screen capture from Bloomberg shows for crude oil prices (Generic 1st ‘CL’ Future), something happened on or around 8/26/2015 to really cause a bounce in oil prices. Upon further research, it wasn’t to hard to see the answer. 8/26 was a Wednesday. And the day before, two base hits: 1. a consumer confidence report claiming US confidence was way up, and 2. Home sales were on the rise!
According to an article titled, “New home sales rise; consumer confidence at seven-month high” in Hellenic Shipping News: “New home sales increased 5.4 percent to a seasonally adjusted annual rate of 507,000 units, the Commerce Department said on Tuesday. Those sales, which account for 8.3 percent of the market, were up 25.8 percent compared to July of last year.
In a second report, the Conference Board said its consumer index jumped to 101.5 this month, the highest reading since January, amid optimism over the labor market. The index was up from July’s reading of 91.0.”
As you can also see from the chart, there has been some strength to the increase which shows some glimmer of hope. This could be very good news for the oil industry as a whole.