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.
What had been billed as the highlight of the week, in the end, turned out to be something of damp squib. The Federal Reserve cut interest rates by a quarter-point, spoke at length on a troubling employment market and once again rammed home the notion that its membership would be unhurried in decision, and take each future one on the basis of contemporary data.
Oil prices are once again dominated by the Ukraine war. We touch on the struggles of the European Union’s application of tariffs and sanctions below, but instead of the hollow words of the protagonists who assure us that Russia’s oil supply will be dealt a blow financially, Ukraine has decided it would mete out a supply problem for its enemy, fundamentally. The continued pot shot use of drones on Russia’s refiners and now Crude export facilities is starting to bear fruit.
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