Storm clouds gathered over the oil markets but didn’t seem to last too long. Weaker than expected Chinese macroeconomic data disappointed again, but not likely putting an end to six consecutive weeks of energy prices gains.
The bullish effect of Saudi Arabia’s production cut extension and Russia’s export curbs in September has evaporated.
Although disruptions in United States refinery operations might boost product cracks further and help recoup some of the lost pricing.
China has become the focus, weighing on oil prices recently, with July export-import data showing the Asian country’s economy is struggling to outgrow its post-COVID woes.
Overseas exports of Chinese goods have recorded the worst month-on-month decline since February 2020 last month.
Down some 14.5% in dollar terms, with weak consumer spending and investment growth aggravating the outlook.
China’s crude imports have followed suit and decreased by 19% m/m to 10.3 million bpd, the lowest daily rate since January even though onshore crude inventories have continued to climb.
The Chinese Central Bank set the yuan at the weakest level in almost a month, seeking to stimulate further exports by means of a slightly devalued currency, however with demand slowing in the US, too, such measures might not be enough.
We here at Big Energy Profits believe the energy rally remains intact.
Until we see a technical reason to think otherwise, members of Big Energy Profits are postured for potentially HUGE RETURNS should our predictions transpire.
A temporary pull back could lead to nothing more than just that.
Markets correct, it allows for better entries. But as long as we continue trending higher, the Big Energy Profit members should yield excellent returns!
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