It has been obvious for a month now that the sentiment on the physical market has considerably deteriorated. Not only have outright prices retreated but structures have weakened, the European crude oil benchmark is now printing below its forward peer whilst it commanded a premium of more than $2/bbl mid-April.
Downtrend has more than one definition. A chart reader would tell you that it is characterized by consecutive lower highs and lower lows. A seasoned trader would argue that what it means in practice is to sell rallies but not buy dips with the same zeal.
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.
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