Daily Oil Fundamentals

Products still leading, King Dollar to stay

24 Jul 2023

Products still leading, King Dollar to stay

Last week saw the complex ending in good form and has now notched up 4-week gains. On the week they individually finished, WTI +$1.65/bbl, Brent +$1.12/bbl, Heating Oil +14.78c/gal, RBOB +15.81c/gal, +$39/ton. Compared with products WTI and Brent had a more stately move higher, being subject to greater immediate macro-economic worries and the flip of refiner turnarounds that are bullying the derivatives higher.

Daily Oil Fundamentals

Products show the way, India will have its say

21 Jul 2023

Products show the way, India will have its say

There is still plenty within the macro-suite to carry on knocking oil off its stride. This is not just something that haunts bulls, howsoever ones sees fit to approach the market there is an economic counter waiting to pounce. The wider suite today is concerned with some markers from the United States. The lower initial jobless claims gives credence to those that still believe the employment market is still running too hot. Inflation is always in mind and investors looking for some sort of relief in the near future from the Federal Reserve will have 10-year breakeven inflation rising 2-basis points within a day to confound them. To put this in context, 10-year breakeven is a daily marker and these moves are not unusual, although such an increase has not happened for a week.

Daily Oil Fundamentals

Oil remains steady, China frustrates and will a wind blow

20 Jul 2023

Oil remains steady, China frustrates and will a wind blow

It appears that markets’ fixation with all that is China this week is not about to go away any time soon. Despite China officials yesterday going on a charm campaign, the 1-year Loan Prime Rate (LPR) was left unchanged this morning in line with this week’s Medium-Lending Facility (MLF). This is hardly the stuff of stimulus that the charm had intimated at and not what investors are looking for. There has been a tweaking of cross-border financing designed to free investment capital and this morning Chinese authorities announce that they will be addressing restrictive mortgage practices aimed at large cities.