Market News Round-Up Reports

Products to the rescue

18 May 2023

Products to the rescue

The mid-day scare caused by the unforeseen swelling of US crude oil inventories quickly dissipated yesterday afternoon after the release of the US oil stockpile report and the oil complex built on the morning gains. The bellwethers of this impressive move higher were products in general and RBOB in particular. US gasoline inventories plunged 1.4 million bbls over last week and they are 0.8% lower than last year and 5.1% below the 5-year average as the US driving season is knocking on the door.

Market News Round-Up Reports

All hail China!

17 May 2023

All hail China!

Weak, sluggish and disappointing. That’s what pessimists would have you believe with regard to the current economic outlook. Concerns over the health of the global economy and oil demand prospects have been front and centre of the oil markets of late. We’ve long argued that the bearish price action is unjustified, a sentiment echoed by the IEA in its latest monthly oil report released yesterday. The Paris-based agency expects global oil demand will increase by 221,000 bpd in 2023 to average 102 mbpd, 180,0000 bpd more than its previous estimate. Moreover, global oil consumption is expected to hit an all-time high of 103 mbpd in August.

Market News Round-Up Reports

Overbaked – Part II

16 May 2023

Overbaked – Part II

It was neatly outlined in yesterday’s note why our cynical selves would be inclined to make a considerable downward revision in oil prices – simply because the underlying overwhelmingly bullish fundamental backdrop is being overlooked for now and economic anxiety caused by high borrowing costs, brewing credit and debt crises makes investors wary and risk-averse.