Oil prices are mixed after reports last week that China is booking a lot of U.S. crude and stories that the U.S. seized a lot of Iranian oil. Conflicting bullish and bearish stories are keeping the oil trade on edge.
Oil prices are struggling to follow through on this week’s breakout as global fears about Covid-19 and lockdowns rise along with mixed economic data coming out of China.
Crude supplies had the largest 3-week drop in history in the all-important Gulf Coast as the U.S. is feeling the impact of the OPEC+ production cuts. The IEA said that global oil demand exceeded supply in June and that would imply that global oil stocks will drawdown for the rest of the year.
The biggest one-day selloff in gold since 2013 after this recent parabolic run up caused margin selling that impacted oil. Oil pulled back from the highest tick since March or pre-OPEC production war.
Last week, there were whispers of a big crude draw and they came true. This week, we hear of a crude draw from 4 million to as much as 10 million barrels. .
The word that President Trump is going to Tik-Tok and other popular Chinese apps like "What's Ap" and "We Chat" due to security concerns, is putting markets in a risk-off mode and weighing on oil prices.
The drive to commodity futures is becoming more apparent as global fiscal and monetary policy, along with a quickly recovering worldwide manufacturing revival, is going to direct more money to the commodity sectors.
