-Behold, the second wave. -Is Brent due for a correction? Crude oil prices were in retraction early Wednesday amid concerns about a second wave of coronavirus infections in the United States, renewed Sino-American trade tensions and a build in US crude oil inventories. Optimism over OPEC+ discipline and the gradual return of demand helped establish … More The Daily Dose; Brent Structure Flips.
Risk level: RED RED: Severe (+/- 4%) ORANGE: High (+/- 3%) YELLOW: Elevated (+/- 2%) BLUE: Guarded (+/- 1%) THE BOOSTER SHOT -JPMorgan goes all in on oil price rally forecast. -Global distraction is adding a risk premium to the market. Another week, another dramatic rise in the price of crude oil. Even with stark … More Global Distraction is a Market Risk
-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 GERM Report 