Markets tend to trade on expectations given their forward-thinking nature and the increasing importance of FOMO. Bets are made when forecasts and predictions are out, and the move is accelerated if the estimates prove accurate further down the line.
The oil complex had a particularly good week and bulls would have been greatly pleased with the progress made. The front month of all the major contracts; WTI +$3.51/bbl (+4.55%), Brent +$3.92/bbl (+4.84%), Heating Oil +21.29c/gal (+7.75%), RBOB +15.40c/gal (+5.50%) and Gasoil +$79.00/tonne
The outlook has not changed, sentiment remains buoyant. Firstly, it is looking increasingly probable that the US will avoid recession. Its economy grew by a forecast-beating 2.4% in 2Q although consumer spending slowed a little and weekly jobless claims fell implying a continuously strong labour market.
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