Displaying items by tag: demand

Just after many Wallstreet firms were predicting oil prices to skyrocket passed $130 the jets have started to cool and oil prices are falling. Oil dipped below $100 a barrel this week and the two biggest factors are demand destruction and China’s latest Covid-19 outbreak. In the U.S. the Ukraine war and high gas prices are deteriorating the demand for commodities and demand is beginning to weaken which in turn affects energy prices. Demand will drop by 1.4 million barrels a day according to Rystad Energy. Additionally, the U.S. is a strong dollar is making it hard to purchase oil-backed goods abroad. China’s lockdown in Shanghai drastically reduces global demand and could be a threat in the intermediate future. If Bejing follows suit it could be devastating.

Finsum: Oil investors should watch out for Russia, which is starting to feel the pressure on its economy.

(Beijing)

China saw a rise in both imports and exports that outpaced…see the full story on our partner Magnifi’s site

(Beijing)

China is one of the largest gold consumers in the world, but the pandemic has…see the full story on our partner Magnifi’s site

(Chicago)

Municipal bond market returns remain low, but nonetheless investors seem willing to keep demanding low yield munis. This rise in demand...view the full story on our partner Magnifi's site.

(New York)

The New York Times has published an interesting piece this week which argues that markets and investors are ignoring an ugly and disastrous reality: that the economy is suffering a huge and largely unprecedented collapse in demand. New data out of Europe and Japan, as well as US manufacturing demand, this week showed that demand fell sharply in May, a sharp contrast to the employment jump. The NYT argues that this systemic fall in demand will take time to play out, but that the huge decline in employment and change in behaviors will cause a rupture in demand that will play out over years.

FINSUM: The NYT piece is very bearish. We held off on covering it until new data was released overnight showing a big fall in demand.