Bearish sentiment is once again emerging in the oil markets

A combination of rising Covid infections in China, uncertainty about the G7 oil price limit and an increase in US oil inventories pushed oil prices lower this week. Although oil prices rose early Friday morning, the buildup of bearish sentiment is palpable. Friday, November 25, 2022 With the oil price cap coming into effect in … Read more

More bad news for oil demand as China’s Covid case count rises

A new spike in Covid infections in China threatens more downward pressure on oil prices as Chinese authorities reported a new daily record of new infections on Thursday. China recorded nearly 32,700 new infections on Thursday, of which only about 3,000 were symptomatic, according to Reuters, but this doesn’t seem to make a difference to … Read more

API again reports a larger than expected raw draw

Crude oil inventories fell another 4.8 million barrels, data from the American Petroleum Institute (API) showed on Tuesday, after falling 5.8 million barrels the week before. Analysts had expected a smaller draw of 2.2 million barrels. According to API data, U.S. crude oil inventories have grown by about 21 million barrels so far this year, … Read more

US, Allies Eye $60 price cap on Russian crude

The United States and its allies hope to set the price level at which Russian crude will be capped, people familiar with the talks told the Wall Street Journal on Tuesday. Officials are talking about setting the price at which Russia’s crude oil will be capped at $60 a barrel. The group will meet on … Read more

Why demand destruction is more worrying than a tight oil market

It seems that the global economy has been in constant flux this year. The headlines are repetitive to the point of being absurd. This uncertainty has translated into high volatility that sent the fear gauge VIX to a 150-day high last month. It still remains high (albeit lower than its recent peak), with most analysts … Read more

Concerns about the coronavirus in China continue to weigh on oil prices

Crude oil trading started today with gains on the rebound on hopes that Chinese demand is about to recover. The hope followed announcements from China that some pandemic restrictions will be eased. The gains, albeit modest, reflect a turnaround in market sentiment, which just last week led to a second straight weekly drop in oil … Read more

Disagreement over gas price cap threatens EU solutions to energy crisis

Four EU countries are threatening to derail a package of measures to tackle the current energy crisis, including measures to jointly purchase natural gas and accelerate permitting for renewable energy projects. The four countries, Belgium, Greece, Italy and Poland, threatened to block the entire package of energy-related measures to alleviate the energy crisis in 27 … Read more

Oil prices rise as US inflation falls below expectations

Oil prices reversed previous losses and rose Thursday, just after the US Bureau of Labor Statistics released data for October showing inflation in the United States was lower than expected last month. Oil prices were able to offset minor losses from the day after cooler-than-expected inflation data, rising more than 1% as of 8:50 a.m. … Read more

Standard Chartered: The risk of negative oil demand growth is increasing

Standard Chartered analysts are now forecasting a decline in global oil demand by more than 400,000 bpd year-over-year in the fourth quarter amid increasingly negative fundamentals. According to Standard Chartered, China is unlikely to “turbocharge” oil demand growth. “Oil prices have risen recently, partly in hopes that China will reopen its economy and cause a … Read more

The next big bullish catalyst for oil is here

By ZeroHedge – 08 Nov 2022, 09:00 CST Chinese stocks rose last week as Beijing considers easing or reversing draconian Covid-zero restrictions. Goldman Sachs’ Chinese economists believe that recent headlines simply mark the beginning of a several-month preparation period for reopening. An early reopening of a bull case would pose a $6/bbl … Read more