OIL PRICE RANGE $90 - $100
On the start of the Globex Open,the Bear claws have been evident within the Crude Oil markets seeing an average of 4.5% drop on the WTI(88$/bbl average lows on Futures contracts from September 2022 to December 2022).
This has been majorly due to the Soft China Data Print.
On the other hand, #BRENT has been clinging within the mid $90s/bbl range and having a price ceiling within the $101.35/bbl as the Tiltpoint.
Renewed concerns on the demand outlook is weighing in on the Oil tabs as China July Data brought a somewhat softened approach,China's fuel product exports is expected to rebound in August,this is after the quotas being issued by Beijing adding pressure to the refining margins.
The Iran Nuclear talks are also within the broth of Oil weighing in as it edges closes to a deal,Libya is also a factor to put into consideration as we look into Sentiment.
It should also be noted that the PBoC benchmark rate is lower than that of the FED fund rate,this should bring up some horns within the Yuan tabs I presume.
They need to employ more tools as the zero Covid policy have deafened the export demand.Interest rate cut shows a troubled economy, more action is being called for,more stimulus.
In such a scenario, is less really more ?
Blessed weeks ahead from my desk,
Andy Warr,
TophatFinance.
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