Thread by @Zero_Analyticz

'Oil climbs as investors shift focus to demand signals, dollar weakens'

By - Nicole Jao for @Reuters

Crude Oil inventories not the war is driving oil prices. The U.S. demand as well as refining challenges...

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reuters.com/business/energ…

... coupled with a weaker dollar are also factors that seem supportive of Oil.

Per @Reuters; "The market is starting to digest the fact that crude oil inventories are very tight all of a sudden".

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This is as Brent futures and WTI futures hit 1.7% and 2.03% to reach "$68.83 [Brent] a barrel at 11:37 a.m. EDT (1637 GMT). U.S. West Texas Intermediate crude was up $1.32, or 2.03%, to $66.24 a barrel."

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Inventory Slump:

Nicole Jao highlights the dip in U.S. Oil inventories reporting that: "U.S. crude oil and fuel inventories fell in the week to June 20 as refining activity and demand rose".

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Also supporting oil prices, is the US Dollar as "the dollar index, which measures the greenback against a basket of currencies, sank to a three-year low", as "crude inventories fell by 5.8 million barrels".

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Zero Equilibrium Takes:

• Going forward, demand dynamics would likely shape price movements as supply increases are tepid at the moment.

• The U.S. remains a major consumer and producer market, as China, the traditional demand house for the past two decades...

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...continues to struggle with boosting investment and consumption demand locally.

• This, coupled with the steady supply from Russia and Iran, mutes Chinese economy's oil demand effects in the markets.

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• Oil is expected to remain damage blind at level we would prescribe at the end of Q2.

Cc: @Reuters

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