Daily Oil Fundamentals

Seemingly Grim Outlook on Supply as well as Demand

04 Sep 2024

Seemingly Grim Outlook on Supply as well as Demand

This is a market, which is reluctant to react to bullish news but happy to jump on the bandwagon when the status quo is re-established. There was no price support forthcoming last week when Libya was forced to shut production down and severely restrict exports, yet the agreement to appoint a central bank governor was greeted with a massive sell-off, which sent the price of Brent to its lowest level this year and RBOB close to the trough of 2021.

Daily Oil Fundamentals

China Serves Oil Prices Poorly as the Market Gaze Ponders US Data

03 Sep 2024

China Serves Oil Prices Poorly as the Market Gaze Ponders US Data

China has yet again sent a shiver through oil market thinking that not even another force majeure in Libya will warm. The declaration on the El-Feel oil field actually gives breathing space for OPEC+ as it appears, in most opinion, to be on the path of bringing shuttered oil back to the market.

Daily Oil Fundamentals

Rate Cuts versus Demand Concerns

02 Sep 2024

Rate Cuts versus Demand Concerns

To paraphrase Churchill: We used to be undecided (about which way the market might go). Now we are not so sure. Equities did broadly well in August, the MSCI All-Country Index gained 1.62%. The S&P 500 Index jumped 2.28% higher but the tech-heavy Nasdaq struggled and settled only 0.65% up. It might be an ominous sign that the sector’s attraction is on the wane. A weaker dollar and retreating bond yields suggest that appetite for risk was healthy last month and economic prospects are sanguine.