It is US versus China. It is inflation against deflation. It is buoyant retail sales here, sluggish reading there. The US is expected to weather the period of inflation, possibly without falling into recession, China is struggling to revive its economic fortunes.
Technical analysts will be happy with a performance from oil yesterday that involved a bounce from a key technical indicator in the 13-day moving average.
The muted price re-action to last week’s encouraging demand estimates, falling OPEC+ supply, declining inventories and mitigated inflationary pressure is a warning signal that unless China joins the party the path upwards will be paved with pitfalls.
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