On the top of every ardent bear’s wish list are a stuttering Chinese economy, relative calm in the Near East and downward revisions in global oil demand growth. These wishes were granted at the beginning of the week, there have been three ticks in the checklist.
Yet again China comes to the aid of bears and embarks on a three-pronged attack on the high oil prices registered due to Middle East war premium. Not just happy with an inconclusive Ministry of Commerce Saturday announcement of, well, not very much in terms of stimulus, the Southeast Asia giant posted yet another bout of inflation data the keeps it firmly rooted in deflationary territory. The final part of the triumvirate of disappointment came via a third-party source.
We shall dive deep into the latest reports from the CFTC and ICE on how traders are committed to oil on Wednesday. For now, it is imperative to point out the obvious. The Israel-Iran acrimony has spurred financial investors to migrate back to the European crude oil benchmark.
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