“Investors should not interpret this as a sign of quiet trading in the summer and muted price moves ahead. Instead, we view this as a good opportunity to add to their long exposure with cheap optionality, especially with global oil inventories continuing to tighten and geopolitics heating up again.”
“While OPEC’s production path remains uncertain, recent fundamental oil data have come in even better than we had expected.”
“Tuesday evening’s API data served to embolden bulls further and all that was missing was this morning’s EIA print to confirm things. Well, here it is.”
Listen, people are super excited about crude. On Tuesday afternoon, we got the latest API data and it showed an impressive draw, with U.S. inventories falling by 10.2m bbl last week. That would be the largest draw since September. Of course it still has to be “confirmed” by the EIA numbers, which we’ll get later this…
“History has shown that attempting this type of timing has rarely succeeded.”
“If Wall Street rewards them for being more reserved with their activity levels and capital expenditures, then maybe it catches on.”
AL-FALIH: SEES SAUDI DEEP CUT IN AUGUST
“In our view, the bar remains high for oil prices to become the main directional driver of HY spreads but the risk has risen.”
“I’m surprised that people didn’t already expect higher OPEC output.”
And so, having been given a (probably temporary reprieve) and a new lease on life, the bulls have managed to drive Brent above $50 for the first time since June 7 on Thursday.
So yeah, another day, another largely fruitless effort to figure out what exactly the message is from DM central bankers. Yellen was, well, Yellen, and her second day on Capitol Hill brought little in the way of surprises although there was this: It is premature to conclude the underlying inflation trend is falling well short…
“We believe this may not send a requisite message to rein in drilling activity for all producers. On the flip side, it sends a theoretical message for producers to issue more debt.”
“Each month something seems to come along to raise doubts about the pace of the rebalancing process.”
Algos, crisis of confidence, incessant data parsing for something negative, or folks “questioning their religion”?
“If output doesn’t rise as much as previously anticipated, then it’s time for the bears to start questioning their religion again.”