Both equities and oil were back in demand last week. As a matter of fact, the latter registered the second successive weekly gain whilst stocks, despite a blip on Thursday and Friday, largely driven by the tech sector, kept marching higher.
The gut reaction to the release of the belated Weekly Petroleum Status Report yesterday afternoon was somewhat perplexing. Every major category registered drawdowns: crude oil stocks depleted by 2.5 million bbls, gasoline inventories declined by 2.3 million bbls and distillate stockpiles fell by 1.7 million bbls
With the US closed trading was thin and the underlying sentiment remains buoyant and hopeful. In a welcome development the product contracts rose significantly with ICE Gasoil now firmly in backwardation.
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