The mixed messages surrounding when, if and how top-up tariff/sanctions might be placed upon Russia are starting to try the patience of any peace optimist or oil bull. While President Trump keeps his attitude of ‘after you ladies and gentlemen of Europe, please,’ on who might go first in applying any additional punitive action, further instances of oversupply emerge to keep oil prices pressured.
If the oil market is deemed bullish because the complex remained stable last week, then it is so only tentatively. Conversely, if it is considered more negative due to the complete lack of willingness to approach significant resistance levels, that view does not rest on a firm footing either.
Although oil bulls have been provided with ample ammunition, they have chosen, for some time now, to keep their gunpowder dry. Seemingly, no amount of geopolitical risk or bright economic prospects is sufficient for them to demonstrate a sustained upside commitment.
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