Daily Oil Fundamentals

Supply Concerns Help Oil Amidst Growing Economic Gloom

03 Jun 2025

Supply Concerns Help Oil Amidst Growing Economic Gloom

Apart from oil risk appetite suffered from nausea and for good reasons. The trade war initiated by the US is in full swing as discussed below and it is being mirrored in hard economic data. It is more of a harbinger of what lies ahead and must not be ignored. Although the European manufacturing sector is on the mend as its PMI rose to 49.4 in May from 49.0 in April, factory activity in several Asian economies is struggling to gain traction.

Daily Oil Fundamentals

Still Bearish

02 Jun 2025

Still Bearish

On Friday we expressed in summation that the art of oil price prediction has become a clouded affair. The many-faceted articles of drivers within current events in which oil is so intractably aligned change on a daily basis, and to ball them up into conclusion could only come with a flow chart of caveats so long that the process would fill a physics chalk board. Yet there are a couple of news items over the weekend that cannot but allow us to once again cast shade of a bearish nature over the near future for our market’s fortune.

Daily Oil Fundamentals

Persistent Ambivalence and Volatility

30 May 2025

Persistent Ambivalence and Volatility

Wednesday’s unanimous ruling of the Federal Court of International Trade concluded that imposing blanket import tariffs is an executive overreach and does not satisfy the criteria of national emergency. (On a side note, the very same legal argument was used to strike down Joe Biden’s student loan relief programme.) Such a sweeping measure is the responsibility of Congress and is above the US President’s pay grade. The ruling demonstrated that Donald Trump is not only susceptible to the judgement of the bond market but also to the rule of law.