It’s the dawn of a new era in oil and everywhere else. US President Joe Biden stepped down to pave the way for a Trump vs Harris election riddled with all things Brat and Hannibal Lecter. In oil, the September Brent futures contract, unburdened from what had been the rangebound trading of last week, saw the beginning of a violent throwing-up. The benchmark crude futures contract was at one point today 10 cents away from falling below $80/bbl. Zooming into the fundamental picture, EIA data for the week ending 19 July reported a 3.741mb draw in US crude oil inventories and a monumental 5.572mb draw in gasoline inventories. The 3-2-1 refinery margin found more support this week on lower crude after falling to its lowest value this year last week. Always lurking in a not-so-far coconut tree, however, is the big bad bear, revealing that US weekly jobless claims dropped 10,000 to 235,000 for the week ending 20 July. In France, we’re at the eve of the Paris Olympics, but not all are celebrating amid business confidence slumping to levels not seen since COVID-19. Volatility is galore in this new age for Brent although it appears as though sentiment has nominated the bears.
