Research type: Commodities
According to the IEA, any large upside in crude oil prices isn't likely due to a possible economic slowdown dragging the demand and rising oil exports.
Ray Dalio mentioned in a LinkedIn post on Wednesday that it's important for investors to explore the market paradigm in which they're currently operating.
The current uptrend in prices isn't exactly due to President Trump’s tariffs. US steel companies look serious about supply discipline.
Gold prices have seen a reversal in the last month or so. The SPDR Gold Shares ETF (GLD) gained 8.0% in June alone.
Since the EIA (U.S. Energy Information Administration) released its inventory data on July 10, US crude oil August futures have fallen 4.7%.
On Monday, Brent crude oil active futures settled $6.9 higher than the WTI crude oil active futures. On July 8, the spread was at $6.45.
Trump is reportedly planning to increase the content of US-made steel in federal projects, which would be a lifeline for US steel companies.
On Friday, China released its June trade data. Its steel capacity and steel exports have been a challenge for the global industry.
US crude oil active futures fell 0.4% and settled at $60.2 per barrel. Since the closing level last week, US crude oil prices have risen ~5.4% as of 3:09 AM ET today.