Stubbornly cold temperatures in the US pushed the price of the CME Heating Oil contract up $2.70/bbl equivalent. This, in turn, helped the whole energy complex advance with WTI finishing the day $1/bbl higher. Concerns about declining Russian output and the Israeli threat to end the Gaza ceasefire, if Hamas does not return hostages by Saturday, added fuel to the bullish fire.
Oil prices along with many other classes of risk are entering a phase of guessing. The metals tariffs announced by the White House yesterday brings an idea that even though Canada and Mexico are enjoying a one month stay of hand from trade restrictions, this notion that tariffs are transactional threats has just been dented.
Trading conditions were choppy last week, but the sentiment soured somewhat in equities and oil continued its downward journey for the third successive week. Potential and in the case of China very real trade restrictions are the sword of Damocles above stock markets.
Copyright © 2025 TP ICAP