Last year was characterized by a healthy dose of reluctance to react to seemingly positive developments as every attempt to push prices higher brought out willing sellers. Yesterday’s performance mirrored this attitude. A variety of price-supportive factors pushed oil prices to peaks not seen since last October.
The hiatus around Christmas and the New Year usually proves to be a muted affair. Whilst there was nothing unexpected or untoward this time around (Russia’s callous attack on Ukraine on Christmas Eve and New Year's Eve atrocities have become the new norm, alas), our market was indeed upbeat and buoyant.
The forward outlook as seen from the US Federal Reserve is not done with influencing investors toward the year end. Fewer interest rate cuts from the US will not only reverberate now but echo all the way to the Presidential inauguration on January 25.
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