Oil rises on easing Fed and trade fears – ING
Oil rebounded yesterday along with other risk assets. ICE Brent settled almost 1.8% higher on the day after President Trump calmed concerns over the future of Federal Reserve Chair Jerome Powell’s position, ING's commodity experts Ewa Manthey and Warren Patterson note.
API data confirms physical tightness in oil market
"Trump stated he has no intention of firing Powell. In addition, comments from both President Trump and Treasury Secretary Scott Bessent on tariffs opened the door for an easing of tensions between the US and China. Yet, signs of tightness in the prompt physical market should continue to support the oil market. This tightness can be seen in the strengthening of timespreads."
"Numbers from the American Petroleum Institute (API) overnight were also constructive. US crude oil inventories fell by 4.57m barrels, while stocks at Cushing declined by 354k barrels. Refined product inventories declined, with gasoline and distillate stocks falling by 2.18m barrels and 1.64m barrels, respectively."
"The more widely followed Energy Information Administration report will be published later today. Numbers similar to API’s would mark the eighth consecutive week of declines in gasoline inventories."
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FXStreet Insights Team
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