Oil prices remain weighed by economic weakness in the world biggest oil importer China as last Monday’s disappointing read in GDP 4.7% against a 5.1% consensus forecast was followed by a CCP statement underscoring the complex economic environment it is facing. Adding to oils woes are OPEC plans of unwiding some of the supply cuts…
Despite an ongoing US driving season weakness in the world’s 2nd largest economy and biggest oil importer, China continue to weigh on Oil prices with the black gold pushing under the late June consolidation floor. At this point with geopolitical tensions largely priced in the main concern of the market is actual barrels to be…
We started the week with a big sell-off in oil, retreating down to the consolidation floor of late June. Seasonal cycles however suggests oil as a buy on any dip to a good support given the on going US driving season. Underscoring this is the drop in Crude Oil prices by 3.4 million barrels as…
Seasonal factors will likely be the main driver for oil over the next month or two, i.e. US driving season providing real demand for black gold. That said we will not discount the potential effects of monetary policy to this picture as an upcoming easing cycle may just convince people there will be good time…
Oil prices has seen a quick ascent from its lows at the start of the month as people begin to price in increased demand with the upcoming US driving season. Note too that production levels until 2025 has largely been broadcast by the OPEC as such focus now will be on actual use of the…
At this point markets more or less know where OPEC stands with regard to production and the question for us is the demand side. With the US driving season already here we should expect demand to pick up at the very least proving a good floor for prices. Throw in speculations over the impact of…
Oil prices are looking interesting following the response to the FOMC and the earlier softness in US inflation. Essentially the charts are telling us a near term high backed by the idea of a longer tight monetary policy environment for the US. That said we are entering the US driving season when seasonal cycles dictate…
Oil saw a sharp rally Monday though we are unable to put a finger on the actual cause. Two things coming up for oil is today’s Monthly Report from OPEC which could clarify supply and demand expectations from the Cartel’s perspective. Meanwhile a clearer source of demand would be the upcoming US driving season which…
Oil prices rarely stay at the bottom whenever they see a sharp sell-off. Given a few days to digest to OPEC+ statement on keeping production levels as they are people are now concluding that Saudi Arabia will be unlikely to boost its own production as the loop holes over OPEC member commitments provided. While the…
Just when we thought Oil was beginning to price in the summer driving season in the US the brief push past its May consolidation highs was reversed as it spent the rest of the previous week easing. By the close Friday we actually had a bearish candle for May. Over the weekend we had an…