The early Singapore Platts window has achieved little in enlivening a market that is beginning to hunker down and accept a possible period of doldrums before the much longed for and publicised third quarter demand seeps through into fact rather than conjecture.
After all, it is possible to put a price on 0.1%. This is by how much the May US core inflation reading exceeded expectations. Consumer prices, without food and energy, rose by 3.4% last month, better than the anticipated 3.5%. Oil jumped nearly a dollar, admittedly helped by the morning’s monthly IEA report.
In today’s data driven environment every day feels like a judgement day. Two of the three monthly findings on oil balance, as discussed in the main topic of this note, warranted a decent rally but the market was understandably cautious and pragmatic ahead of today’s Chinese and US inflation reports.
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