-Demand signals are louder than COVID concerns. -Russia looks set to end OPEC+ constraint. The futures structure for Brent crude oil moved into slight backwardation in late Thursday trading after Iraq and Kazakhstan pledged to uphold their curtailment obligations to OPEC. Backwardation, where late-month contracts trade at a discount to the market, signals the oversupply … More The Daily Dose; Backwardation Baby.
-The market is extremely fickle. -OPEC stands pat on outlook. It may well be the third quarter before demand resumes in the US economy. That was the word from US Federal Reserve Vice Chair Richard Clarida, who delivered a message late Tuesday to the Foreign Policy Association in New York. That followed testimony from Fed … More The Daily Dose; The Roller Coaster Economy.
-Like OPEC, US Fed Chief Powell needs a Goldilocks moment. -OECD finds the global employment situation to be bleak. Chinese oil demand is almost back to what it was in late 2019, before the onset of the coronavirus pandemic. US consumer fuel demand, meanwhile, is recovering from an April slump. That’s the word Wednesday from … More The Daily Dose; Is Reality (Finally) Catching Up With the Market?
The GERM Report 