The Oil market managed a second consecutive week of positive factors, pushed largely by tariff de-escalation. Nevertheless, the market is in limbo this morning because it weighs what affect, if any, the US credit score downgrade by Moody’s Buyers Service can have on Oil. As well as, there’s nonetheless loads of uncertainty over how Iranian nuclear talks will play out, ING’s commodity consultants Ewa Manthey and Warren Patterson observe.
Market focuses on a name between Trump and Putin
“For at the moment, a lot of the eye is on a scheduled name between President Trump and President Putin concerning the Russia-Ukraine warfare. The market might be looking out for any indicators of potential de-escalation. Basically, although, even when we have been to see a peace deal and the eventual lifting of sanctions in opposition to Russia, there would solely be a restricted enhance in provide. Russia has managed to climate Western sanctions comparatively effectively by rerouting Oil flows to China and India.”
“The most recent positioning knowledge reveals that speculators elevated their web lengthy in ICE Brent by 53,586 heaps to 151,144 heaps during the last reporting week. This enhance was predominantly pushed by contemporary longs coming into the market as sentiment improved with the tariff pause between China and the US.”
“The US Oil rig depend fell for the third consecutive week, declining by 1 final week to 473, leaving the depend at its lowest since late January, in keeping with Baker Hughes knowledge. Decrease costs have seen a pullback in drilling exercise within the US. If present costs persist, we’re more likely to see an additional easing.”
