Oil Crude prices did an about-face after OPEC+ hinted they could adjust their output increase plan if the US is successful in getting many countries to tap their respective strategic petroleum reserves. Earlier, oil prices were declining as the energy market was bracing for a larger-than-expected release of global strategic petroleum reserves and as Germany struggled with the latest surge of COVID.  Japan and India are looking to join the Americans and Chinese in tackling the recent surge in oil prices that has happened throughout the majority of the year. OPEC+ is pushing back on this coordinated effort which is being led by the US to thwart surging energy costs as the global economic recovery stumbles to runaway inflation fears. WTI crude will remain … [Read More...]

The British pound is in negative territory in the Friday session. GBP/USD is currently trading at 1.3450, down 0.35% on the day. Retail sales improve UK retail sales for October surprised the markets, as the gain of 0.8% m/m was the first gain in five months. Clearly good news, but the improvement could well be due to early Christmas shopping rather than a change in the mindset of consumers, who have been slow to spend since the end of the lockdown in the summer. Consumer confidence has been weak as caution is the mantra in what has been a difficult year. On an annual basis, retail sales fell by -1.6%, which follows a read of -1.1% in September. Inflation continues to accelerate as the “transient” … [Read More...]

Oil Crude prices initially declined as pressure grows for the White House to tap the SPR. US energy secretary Granholm reiterated President Biden is considering limited tools he has to address high gasoline prices. Over the weekend, Senate Majority Leader Schumer pushed Biden to release oil from the Strategic Petroleum Reserve. The crude demand outlook is not getting any favors from Europe as many countries consider fresh restrictive measures. France posted disappointing road fuel sales that show gasoline and diesel sales are below levels seen two years ago. WTI crude pared losses after the EIA forecasted Permian oil output to hit a record high next month.  Other regions are still nowhere near pre-pandemic levels, so this increase from the Permian will offer little relief to elevated … [Read More...]