The daily rotation of sentiment runs unabated in oil prices and after a much better performance yesterday, inspired by a tightening distillate market and dovish comments from members of the US Federal Reserve, the mood once again changes this morning.
The Russian-Ukrainian war, with all its consequences for the short and medium-term oil balance, remains at the centre of investors’ attention. Yesterday’s conflicting performance—RBOB falling, distillates rising, and crude oil settling broadly unchanged—suggests an undecided or cautious approach for now. The best way to sum up the current backdrop is to ask questions.
Even though each week threatens to reveal a final solving of the never-ending and multi aspects of a Russian solution in oil market thinking, there is always a Narnia cupboard door allowing an escape into fantasy to gather more unforeseen and unexpected twists.
Copyright © 2025 TP ICAP