Wednesday’s sell-off began immediately after the release of the US inventory report by the EIA. There was a tentative attempt to recover yesterday morning, but hopes were shattered after the IEA published its updated supply-demand outlook.
The key takeaway after yesterday’s confident performance in the oil market is that currently events around Israel and Gaza together with Ukraine’s war against Russia weighs more on the sentiment than disappointing US inflation data.
Risk appetite appeared insatiable last week. It was a sudden turn of sentiment after the previous week’s sell-off. Several developments are responsible for brightening the mood.
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