Daily Oil Fundamentals

Trying to Bury the Hatchet

11 Jun 2025

Trying to Bury the Hatchet

After two days of negotiations the US and China have agreed to a framework to return to the Geneva agreement struck in May, which was aimed to ease the acrimony between the world’s two largest economies. To recap the deal the two countries agreed to lower the reciprocal tariffs by 115% for 90 days only to mutually accuse each other of breaking the deal. Details of the framework have not been provided, and the agreement will now be presented to the two leaders. The market reaction has, so far, been tepid as it is anything but clear how economic growth and global oil demand will be affected.

Daily Oil Fundamentals

London Talks Block Out the Horizon

10 Jun 2025

London Talks Block Out the Horizon

One must admire the optimism of investors. The Sino/US trade talks enter a second day and instead of being seen as them being a touch sticky, markets across the gamut of investment are starting to price a successful outcome. Yes, hope is whipped by the US Administration with the likes of the Commerce Secretary, Howard Lutnick, observing initial discussions had been “fruitful” which was endorsed by his President back in Washington claiming, “we are doing well with China.”

Daily Oil Fundamentals

Chekhov’s Rifle

09 Jun 2025

Chekhov’s Rifle

Oil recorded impressive gains last week, but bond prices weakened. Equities were stable, notwithstanding the sensational but anticipated fallout between the world’s most powerful man and the richest one. The charade could be easily dismissed as a clash of egos, nonetheless it lays bare the consequences of a plutocratic administration headed by those from the private sector. It also confirms the suspicion that this is a government of the people, by the people and for the people no longer, also embodied in deploying the National Guard in LA protests over the weekend.