Like a boxer, sometimes markets must cover up when confronted with big punches. If the left hand of the heavyweight Laughing Boy Trump is bearish by repeating a promise that the US will raise production to bring oil prices down, then the right hand is the bullish announcement of the first sanctions on ships that handle Iranian oil exports to China.
Although the presence of Donald Trump was still keenly felt over our market yesterday, some order was re-established. Focus shifted away from the guessing game, headline trading that shaped investor sentiment lately and genuine worries about the oil balance ensured that the move down, which started in mid-January continues after an upside correction on Tuesday. Headline EIA numbers are to blame.
The breathless pace at which President Trump rolls out policy and the exorcising process of sharing whatever thought is on his mind, leaves the world and markets bamboozled. Yesterday’s late performance alongside Benjamin Netanyahu in which he speculated on a US taking over of the Gaza Strip, turning it into the Middles East’s Riviera and asking the likes of Jordan and Egypt to take displaced Palestinians, tops the board of impulsive delusion. Or, magnificent performance gamesmanship, depending on one’s point of view.
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