While U.S. banks passed their stress tests, oil traders may not. Caution is weighing on market sentiment and offsets all the good news about faster than expected oil demand recovery.
Just when you thought it was safe to go back in the water, Covid-19 concerns again are weighing on market sentiment and hurting prices for oil and products.
Fears that a trade war could slow that improvement is making markets nervous even though the Trump administration is leaving some time to negotiate a trade truce.
U.S. stocks are rising as fears that a step backward when it comes to the war Covid-19 seems to be easing, but movement by Brent Crude Oil futures suggests a tightening global oil market.
The comeback in demand is a testament to the impact of global economic stimulus and its effectiveness in healing the global economy. Increased oil demand should give hope that it’s signaling a big rebound in economic growth later this year.
While the new IEA report is grabbing headlines by saying that the global demand for oil might not recover until 2022, the news in the report isn’t all bad.
