WTI, Brent, Crude Oil
The current oil prices are already at such a high level that not everyone knows why they are constantly rising. I will quote yesterday’s statement by a Saudi minister. Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, said late Wednesday: “We also have a role in taming and containing inflation, making sure this market does not run out of control.” An additional comment was that it is not clear whether oil prices are rising due to “real supply and demand” or because of “overly optimistic expectations and trajectories”. His comments come ahead of next week’s OPEC and its allies (OPEC +) meeting, scheduled for July 1.
Looking at such comments, yesterday’s increase a day before the data release is a bit misleading. Nobody knows anything, but the data is known beforehand and big investors buy before the data comes out. Very not nice. Because probably no one believes that retail investors predict macroeconomic readings with a high degree of probability? Bearing in mind, of course, that 90% of investors lose money in the financial markets!