STRONG OIL VOLATILITY
Last week we saw major volatility on the Oil tabs especially on the Bearish alignment,as the rangebound zones maintained within the Crude Oil WTI(ranging between highs of $114.20/bbl & lows of $107.25/bbl), #BRENT bracing a 2$/bbl range while Natural Gas #NG being very volatile with a lot of Geopoliticals in play.
Whipsaws have been experienced each day on the #NG.
COT on #Commodities covering the week to June 28 saw speculators respond to a cont. loss of momentum driven by recession/demand worries by cutting bullish bets by 16% to a 23-month low.
We should look into disruption in the travel sector since summer is here.
On the sanctions tabs,there is still talks of placing an Oil cap on Russian imports while on the balance,talks of demand destruction have been evident.
Lots of talk of “price caps”, but we should remember two things:
1:#Russia is exporting more #Oil at higher $/bbl than in ‘21
2: it’s already redirecting large flows to India/China and a growing opaque market.
Major US Cash equity trades are muted as we are having the 4th July holiday break.
European equities are higher at an average of 1% per piece.
On Copper, as a main indicator of global economic health;Westpac states:
Given the current macro backdrop, #Copper doesn’t seem to have a lot going for it after trading below $8,000 for first time in 18m Friday. The sharp weakening in global data pulse has been a factor behind 22% drop in last 3 months.
As we look forward to the 2nd half of the year,I wish you wealth and growth.