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.
Recommended Content
Editors’ Picks
EUR/USD drops toward 1.0650 ahead of German inflation data
EUR/USD is falling toward 1.0650 in European trading. Dismal China's Manufacturing PMI and pre-US debt deal vote anxiety support the safe-haven US Dollar while markets pare ECB rate hike bets after softer French inflation data. German inflation data, Fedspeak and US House vote eyed.
GBP/USD extends losses toward 1.2350 amid firmer US Dollar
GBP/USD is extending losses toward 1.2350 in the European session. Markets stay jittery amid China growth worries and ahead of the US House vote on the debt deal. Hawkish Fed's Mester underpins the ongoing US Dollar upsurge. More Fedspeak in focus.
Gold price rebound eyes $1,990 and US factors
Gold Price picks up bids to refresh intraday high as buyers cheer a two-day winning streak, after refreshing the lowest levels in 10 weeks. In doing so, the XAU/USD fails to justify the latest rebound in the DXY but aptly cheers the downbeat Treasury bond yields.
BTC bulls recovery plan targets $30,000 as bears exhaust
Bitcoin action slows down, allowing bears to doubt their strength. As more time elapses, the chances of bulls taking over control of BTC become more likely. A spillover effect would be noticeable in Ethereum and Ripple prices.
Risk off flow into month end
We had warned against the market wanting to get overly excited about the news of a US debt ceiling deal that was always going to get done. And now that this reality is coming to fruition, it’s back to focusing on the market drivers where investors need to focus.