Stephen Innes
SPI Asset Management
Unsurprisingly, as the world's 2nd biggest oil consumer emerges from a three-year COVID cocoon, oil prices continue to rise after this year's balmy weather-inspired crush on the energy complex.
Indeed, China's bumpy reopening is a crucial source of upside risk to global growth and commodity prices in 2023.
On the geopolitical front, the US and its allies are planning new sanctions on the Russian oil industry aiming to cap the sales prices of Russian exports of refined petroleum products in a step traders think could squeeze global supply.
US Nat Gas prices are rising in anticipation of colder weather in the US which should drive winter fuel products higher.
With SPR flows slowing to a trickle and with markets beginning to wrap their heads around the idea of a US soft landing amid favourable growth impulses from the EU and China, the path of least resistance, albeit a knobbly one, should see higher oil prices as China's mobility returns to trend.
SPI Asset Management provides forex, commodities, and global indices analysis, in a timely and accurate fashion on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.
Our publications are for general information purposes only. It is not investment advice or a solicitation to buy or sell securities.
Opinions are the authors — not necessarily SPI Asset Management its officers or directors. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.
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