Oil gained in Thursday trade, those more worried about supply issues were the winners for the day.
The supply worries centre on OPEC/Russia output cuts and the ramifications of terrorist attacks on Israel on Middle East stability.
Demand worries focus on global economic growth perhaps faltering. This week we’ve seen a (large) rise in inventory again.
Via RBC, an analyst points out that despite concerns that the Israel-Hamas conflict could escalate and disrupt the world’s oil supply, a surprisingly large build in gasoline in the United States last week is assisting in keeping prices in control, for now:
- “The question is what’s going to win out this year. This broader concern about the macro backdrop — potential demand softness — or questions about the security of supply”
You can see the gap up in price after last weekend and that its more or less filled in.