Daily Oil Fundamentals

Products show the way, India will have its say

21 Jul 2023

Products show the way, India will have its say

There is still plenty within the macro-suite to carry on knocking oil off its stride. This is not just something that haunts bulls, howsoever ones sees fit to approach the market there is an economic counter waiting to pounce. The wider suite today is concerned with some markers from the United States. The lower initial jobless claims gives credence to those that still believe the employment market is still running too hot. Inflation is always in mind and investors looking for some sort of relief in the near future from the Federal Reserve will have 10-year breakeven inflation rising 2-basis points within a day to confound them. To put this in context, 10-year breakeven is a daily marker and these moves are not unusual, although such an increase has not happened for a week.

Daily Oil Fundamentals

Oil remains steady, China frustrates and will a wind blow

20 Jul 2023

Oil remains steady, China frustrates and will a wind blow

It appears that markets’ fixation with all that is China this week is not about to go away any time soon. Despite China officials yesterday going on a charm campaign, the 1-year Loan Prime Rate (LPR) was left unchanged this morning in line with this week’s Medium-Lending Facility (MLF). This is hardly the stuff of stimulus that the charm had intimated at and not what investors are looking for. There has been a tweaking of cross-border financing designed to free investment capital and this morning Chinese authorities announce that they will be addressing restrictive mortgage practices aimed at large cities.

Daily Oil Fundamentals

Oil quietly steady, Central Banks have the ball

19 Jul 2023

Oil quietly steady, Central Banks have the ball

It does seem rather poignant that the biggest headline of the week in oil was in fact false and withdrawn. This refers to the ‘flash’ informing us that Saudi Arabia would extend its voluntary cut through December 2024. Nevermind, one might imagine our collective agreeing, at least the US oil reports will give us much to chew over. Those of us expecting some fireworks from the overnight API oil stock report are sorely disappointed as it lands with a bit of a whisper rather than a bang.