Crude oil trading has really tightened up over the last month. The upward momentum continues, with last week's high at $43.50 being re-targeted again
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.
In a move that could be just the coming attractions of a bull oil market run, there are more concerns about the stability of future oil supply.
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.
Oil again rejected the sub $40.00 a barrel area as talk starts to circulate that we could see a significant drawdown in U.S. crude oil inventory.
The refining world has changed. Now refiners are shutting down because the demand for fuel is weak and they can't make money.
OPEC+ is going to rollback cuts and add 1.5 million barrels of oil to the global oil market starting August 1. Now with more uncertainty about a Covid-19 second wave and a devastating weekly jobs reports, a historically wrong U.S. GDP number, perhaps at this time, a production increase might not be a great idea.
Markets are a bit hungover even as the party master, Jerome Powell, swears he will keep the party going. Despite all of the macro madness, the data at some point will matter.
Talk of a stimulus stall is holding crude oil back a bit after a surprisingly bullish 6.829 million barrel crude oil draw. The draw in part may be storm influenced in the U.S.
While the demand growth for oil may not be what it might have been, the reality is that oil demand growth will continue to grow. The expectations that electric cars and a carbon-neutral world will crush peak demand for oil is flawed.