(Bloomberg) – The oil market is becoming increasingly numb to the changes that Donald Trump is now trying to create that he is an US President again.
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Trump spent his first week in office railings against OPEC, demanding ending war in Ukraine, and threatening tariffs against some main raw suppliers for the US. All those things can have major results for supply and demand in the oil market.
But instead of causing price swings, the futures market is flat-line. A gauge of volatility inherent for benchmark brent futures – traders hope to swing oil prices to fall to its lowest level from July this week from July to July this week.
Standard Chartered PLC analysts including Emily Ashford wrote this week, “The oil market is showing signs of disorientation in front of the outer volume of the new policy stance.” “Facked with so much information and realization that a single social media post can move the market a lot in any direction at any time, many traders have responded by reducing their risk risk.”
To be clear, an underlying lack of instability predicted Trump’s return to the White House. Even the unprecedented sanctions against Russia by the Biden administration lost their impact quickly.
The OPEC+ manufacturer group continues to keep barrels from the group market, which has a twin effect of reducing the supply to keep a floor under prices, while simultaneously means that a lot of additional ability is available to meet unexpected disruptions. .
Although prices were briefly rally when Trump threatened to put tariffs on Canadian and Mexican oil imports, they have fallen since the US tries to make a deal with Russia to end the war in Ukraine.
In the midst of this, the maximum pressure on Iranian oil exports has moved forward around the strategy, as well as a pledge to promote American production and fill the country’s strategic oil reserves. All have so far failed to dramatically shake the market approach.
Brent Futures have been anchored around the $ 75-A-market mark in recent months, and have so far swung into a band of less than $ 4 in February. The bookies have posted one of the largest pullbacks among the net-bullish vessels over the years in the last three weeks. The Agiget Open Interest for the US Benchmark West Texas Intermediate, meanwhile, is the lowest since November as the trading volume has declined from their January height.
(In the last paragraph adds open interest and data on the volume.)
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