Oil struggles proceed. WTI down 11-cents to $37.21

Oil struggles continue. WTI down 11-cents to $37.21

My base case for the time being is {that a} sequence of remoted occasions are making a mirage of threat aversion:

  1. Brexit worries
  2. Tech mini-bubble bursting
  3. Oil falling

The third on the listing is essentially the most worrisome. Oil demand is a superb measure of the true economic system and the reopening. Oil bulls needs to be comforted by the explosion in automotive gross sales throughout the pandemic however for the time being, it is not translating into gasoline demand.

From CIBC:

The weekly EIA gasoline equipped knowledge, a proxy for shopper demand, continues to hover round ~90% of the five-year demand common for the final 9 weeks. Final week’s knowledge (which arguably ought to have been boosted by labor day weekend stocking of secondary sources, comparable to retail stations) additionally failed to point out an enchancment, and with the summer season driving season behind us in North America, the restoration in oil demand stays frayed with uncertainty.

For financial institution commerce concepts, take a look at eFX Plus