Daily Oil Fundamentals

Favourable Inflation Reading Further Brightens Sentiment

14 May 2025

Favourable Inflation Reading Further Brightens Sentiment

Whether the tariff policy of the US Administration jeopardises US and global growth and poses any danger to public finances depends on one’s view. For the medium-term, as discussed below, it is a gnarly undertaking to foretell an unconditional prosperity. We are, however, living at times when planning for the medium, let alone long-term, is simply irresponsible.

Daily Oil Fundamentals

He Told Us it was Going Up

13 May 2025

He Told Us it was Going Up

In the ever-hopeful world of stock market investors, the news yesterday of a ninety-day grace period where the US reduces tariffs on China from 145% to 30%, and in turn, China on the US from 125% to 10% is good news. Welcome back to a form of financial relativism where one person's economic and trade restrictions should not be a hinderance to how another’s ever-bull tendencies may be expressed. What happens after ninety days is ignored, so is how this new development cures the motivation of President Trump to combat the ballooning trade deficit between the US and China.

Daily Oil Fundamentals

Ceasefires All Around

12 May 2025

Ceasefires All Around

To say that the return of risk appetite in the second half of last week was akin to a Lucullan feast would be a fervent statement, nonetheless, there was a discernible hunt for assets such as equities, the dollar and oil. The optimism was the result of actual and proposed trade negotiations between the US and its trading partners. President Trump can undeniably declare a victory over one of its steadfast allies, the UK, after a trade deal was announced on Thursday. The announcement came with the usual misleading narrative, saying that it was a comprehensive agreement.