The current grim view is underpinned by the lacklustre response to a smorgasbord of seemingly price-supportive developments. The weekly US oil statistics recorded drawdowns across the board. The 7 million bbls decline in commercial inventories indicates that OECD stocks might not build considerably in the last quarter of the year preventing prices from nosediving.
Everything is discounted in prices. This mantra suggests our market is balanced. After all, trading ranges were narrow yesterday and settlements were broadly unchanged. There was no game-changing development in China, its outlook remains grim. The Shanghai Composite Index is unchanged despite the latest boost of funds for housing projects.
On the top of every ardent bear’s wish list are a stuttering Chinese economy, relative calm in the Near East and downward revisions in global oil demand growth. These wishes were granted at the beginning of the week, there have been three ticks in the checklist.
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