The hiatus around Christmas and the New Year usually proves to be a muted affair. Whilst there was nothing unexpected or untoward this time around (Russia’s callous attack on Ukraine on Christmas Eve and New Year's Eve atrocities have become the new norm, alas), our market was indeed upbeat and buoyant.
The forward outlook as seen from the US Federal Reserve is not done with influencing investors toward the year end. Fewer interest rate cuts from the US will not only reverberate now but echo all the way to the Presidential inauguration on January 25.
The oil market has at last experienced a seasonal demand indicator as seen in the Distillate draw in the US EIA Inventory Report. Stocks of the middle barrel product reduced by 3.2mb against a build expectation of 0.7mb. However, what brings seasonal cheer is at the current 4.5mbpd demand, it is the highest since early 2022.
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