Daily Oil Fundamentals

Double, Triple, Quadruple, the Whammies Line Up Against Oil Prices

18 Nov 2024

Double, Triple, Quadruple, the Whammies Line Up Against Oil Prices

Although there is no singular oil current affairs influence that will see Brent prices scuttle to $60/barrel and below, there is however, a convergence of market forces that put paid to any ideas of a reclamation of $80/barrel. This is why oil prices had struggled all last week and staying with Brent, ended nearly $3/barrel lower. Picking any of the debilitating guards against rallies as the most important is subjective, it is the influence in the round that is all-important, and different drivers will jockey to the front of bearish considerations as and when appropriate.

Daily Oil Fundamentals

Solid US Gasoline Demand Countered by China

15 Nov 2024

Solid US Gasoline Demand Countered by China

It is almost an eternal truth that the price of risk assets falls quicker and harder than it climbs. This mantra was clearly evident over the last few days when front Brent dropped $4.5/bbl in 3 sessions between last Thursday and this Monday and have not been able to reclaim even half of these losses in the following three days. The bounce from Wednesday’s lows has been tepid, and yesterday’s ascent was unconvincing.

Daily Oil Fundamentals

Forecasts Remain Tolerable but Not So the US Dollar

14 Nov 2024

Forecasts Remain Tolerable but Not So the US Dollar

We await the IEA report today, but thus far the EIA Short Term Energy Outlook (STEO) have shown accord in how China's oil demand continues to shrink. Indeed, the EIA now forecasts India to be the major source of oil demand in 2024 and 2025, accounting for 25% of total oil consumption growth globally. Next year might be a year of India, instead of China watching.