About Jess

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So far Jess has created 282 blog entries.

Déjà vu

They met, they talked, and they caught the markets unawares. OPEC+ decided against easing supply curbs next month, choosing instead to roll over the current production levels next month. The only exception was that Russia and Kazakhstan will be allowed to increase production by 130,000 bpd and 20,000 bpd, respectively. Saudi Arabia also offered to [...]

2021-03-05T11:33:01+00:00March 5th, 2021|

Hitting the pause button

Apprehension, alarm, unease – call it what you will – is taking hold across the oil markets. The price rally is grinding to a halt before tomorrow’s OPEC+ meeting amid the prospect of increased supply from the group. Around 500,000 bpd is expected to be returned to the market from April onwards and, needless to [...]

2021-03-03T10:08:38+00:00March 3rd, 2021|

The light is stronger

A quick look at the monthly settlement prices reveals that investors’ confidence is unbroken as the upward march in risky assets continued unabated last month. Both equities and commodities finished February significantly higher despite the wobble towards the end of the month. Developments throughout the month vindicated this move north although those who think that [...]

2021-03-01T10:24:40+00:00March 1st, 2021|

Wall Street takes a beating

For those who missed the first lesson of Wall Street 101: the higher the yield on bonds the more we see a push out of stocks. This financial truism was plain to see yesterday. Bond markets were a sea of red as anxiety about rising inflation took centre stage. Unprecedented stimulus measures from the Federal [...]

2021-02-26T11:25:35+00:00February 26th, 2021|

The Texan freeze

The impact of last week’s big freeze in the main crude oil producing, refining and export/import centre of the US was palpable in yesterday’s EIA report on oil inventories. No long-term conclusion should be drawn from the report though, which contained one major surprise. It was the unexpected build in crude oil inventories. Analysts surveyed [...]

2021-02-25T10:27:55+00:00February 25th, 2021|

Go Go Powell Ranger

Wilds swings were the order of the day yesterday. Oil prices rallied hard before diving into the red only to recover to end the session little changed. Brent and WTI initially rose more than $1/bbl to fresh 13-month highs on the back of ongoing US supply disruptions. As well as taking longer than expected to [...]

2021-02-24T10:37:54+00:00February 24th, 2021|

Slow recovery in Texas

There are presently three developments that keeps the oil market on its toe these days. These are the outcome of next week’s OPEC+ meeting (discussed below), the Iranian nuclear negotiations and the impact of the Texas freeze. After the US said it would accept an invitation to sit down with P5 countries and Iran confidence [...]

2021-02-23T11:38:32+00:00February 23rd, 2021|

Rally. Pause. Dip. Repeat.

Corrections are part and parcel of uptrending markets. And last week it was the turn of the energy complex to succumb to this maxim. This month’s bullish run in the oil market was hit by profit-taking at the tail end of last week. This came as prices touched fresh 13-month highs with Brent briefly topping [...]

2021-02-22T09:35:51+00:00February 22nd, 2021|
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