Early optimism in equities was foiled overnight following a rally in Crude Oil pushing Brent back up through $US100/bbl. As MM alluded to earlier in the week, Chinese authorities are getting poised to stimulate their economy to offset the impact of Covid induced lockdowns. The big price swings in Oil this week highlight how tight the market has become. We think Oil has seen its peak for now however it’s entered a new trading equilibrium, with strong buying support below $US100/bbl.
MM is neutral/bullish Oil around ~$US100
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