Oil Markets: Oil prices continue to rise
Unsurprisingly, as the world's 2nd biggest oil consumer emerges from a three-year COVID cocoon, oil prices continue to rise after this year's balmy weather-inspired crush on the energy complex.
Indeed, China's bumpy reopening is a crucial source of upside risk to global growth and commodity prices in 2023.
On the geopolitical front, the US and its allies are planning new sanctions on the Russian oil industry aiming to cap the sales prices of Russian exports of refined petroleum products in a step traders think could squeeze global supply.
US Nat Gas prices are rising in anticipation of colder weather in the US which should drive winter fuel products higher.
With SPR flows slowing to a trickle and with markets beginning to wrap their heads around the idea of a US soft landing amid favourable growth impulses from the EU and China, the path of least resistance, albeit a knobbly one, should see higher oil prices as China's mobility returns to trend.
Author
Stephen Innes
SPI Asset Management
With more than 25 years of experience, Stephen has a deep-seated knowledge of G10 and Asian currency markets as well as precious metal and oil markets.
