Markets’ sentiments have returned to bad news equals good news again. The rise in Initial Jobless Claims in the US is taken as a weakening of the employment market, so very much watched by investors and the FED alike as it might allow for a bringing forward of any interest rate reduction.
The difference between voluntary and mandatory data submission can sometimes be as much as 2 million bbls. The latest downturn in oil prices was triggered last Wednesday when the EIA registered an unexpected build of 7.3 million bbls in crude oil inventories. It made amends yesterday when it reported a draw of 1.4 million bbls against a build of 509,000 bbls seen by the API.
What a difference a week makes. WTI and Brent, even more so, were riding a sentiment that continued to ignore the possibility of a Gaza ceasefire, poor Distillate performances and shifting sands from the macro suite while boasting lofty backwardation in M1/M2 spreads.
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