Daily Oil Fundamentals

Inflated US Oil Stocks, Stuttering Economy

05 Jun 2025

Inflated US Oil Stocks, Stuttering Economy

Fears of supply disruption from Canada and geopolitical risk premiums from the Middle East and Ukraine were on the back burner yesterday. The oil fraternity cast its eye over US oil inventories and the threat of growing supply. Proxy demand for US gasoline and distillates showed weekly declines of 1.2 mbpd and 740,000 bpd. No surprise then that stockpiles in both products ballooned firmly aided by the 3.1% rise in utilization rates. When refiners step on the accelerator crude oil stocks tend to plunge.

Daily Oil Fundamentals

‘Best Offer’ Day is Here, Who Has the ‘Metal’ to Get Involved?

04 Jun 2025

‘Best Offer’ Day is Here, Who Has the ‘Metal’ to Get Involved?

Markets once again experience a turn point day as the ‘best offer’ deadline for countries to propose their trade deals with US arrives. Five weeks ahead of the day when the reciprocal tariffs will be implemented, it appears Trump’s Administration is keen for countries to settle beforehand. Cynically speaking, it does beg as to whether the US is playing chicken, and one wonders if some hard-nosed dealing countries were to take it to the limit, there might not be just another extension available.

Daily Oil Fundamentals

Supply Concerns Help Oil Amidst Growing Economic Gloom

03 Jun 2025

Supply Concerns Help Oil Amidst Growing Economic Gloom

Apart from oil risk appetite suffered from nausea and for good reasons. The trade war initiated by the US is in full swing as discussed below and it is being mirrored in hard economic data. It is more of a harbinger of what lies ahead and must not be ignored. Although the European manufacturing sector is on the mend as its PMI rose to 49.4 in May from 49.0 in April, factory activity in several Asian economies is struggling to gain traction.