MNI: PBOC Net Drains CNY204.5 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Lower At 7.1691 Thurs; -1.02% Y/Y

MNI BRIEF: Ex-BOC's Poloz Sees 20% CAD Drop In Trade War

MNI NBP WATCH: Rates Held At 5.75%, Trump Risk Highlighted

MNI BRIEF: U.S. Wage Growth Stagnating At Strong Levels - ADP

MNI China Daily Summary: Wednesday, February 5

MNI: SWEDEN FLASH JAN CPIF +2.2% Y/Y

MNI: SWISS JAN UNEMPLOYMENT +4.2% M/M, +20% Y/Y

MNI:AUSTRALIA DEC TRADE BALANCE A$+5085

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

GERMANY: Kukies Considers Potential Non-Implementation Of 2024 Suppl' Budget

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

OIL: Crude Holds Onto Losses As Outlook Remains Highly Uncertain

OIL
EM BulletCommoditiesEnergy BulletsBulletMarketsFixed Income BulletsForeign Exchange Bullets

Oil prices are moderately higher today after selling off around 2% on Wednesday. WTI is up 0.2% to $71.16/bbl after a high of $71.32. Brent is 0.1% higher at $74.68/bbl following a peak of $74.85. The USD index is up 0.1%.

  • Markets remain concerned that increased trade protectionism will weigh on global growth and thus demand for fuel.
  • The impact of US policy on the oil outlook remains highly uncertain. The prospect of tariffs has increased flows from Canada, which has boosted US inventories. A plan for peace in Ukraine may result in increased exports from Russia but at the same time a tougher attitude towards Iran could reduce theirs. Also, President Trump wants to see higher US crude output.
  • Excluding these factors, the market was forecast to be in surplus in 2025. Bloomberg is reporting that Brent’s prompt spread has narrowed signalling some easing in the market.
  • Later the Fed’s Jefferson, Waller and Logan speak and US January Challenger job cuts, jobless claims and Q4 productivity/ULC print. Oil markets will be focussing on Fridays’ January payroll data with consensus expecting a 170k rise in jobs (see MNI US payrolls preview). The BoE is expected to cut rates 25bp. Also German December orders, euro area December retail sales and Canada’s January PMI are released.  
212 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Oil prices are moderately higher today after selling off around 2% on Wednesday. WTI is up 0.2% to $71.16/bbl after a high of $71.32. Brent is 0.1% higher at $74.68/bbl following a peak of $74.85. The USD index is up 0.1%.

  • Markets remain concerned that increased trade protectionism will weigh on global growth and thus demand for fuel.
  • The impact of US policy on the oil outlook remains highly uncertain. The prospect of tariffs has increased flows from Canada, which has boosted US inventories. A plan for peace in Ukraine may result in increased exports from Russia but at the same time a tougher attitude towards Iran could reduce theirs. Also, President Trump wants to see higher US crude output.
  • Excluding these factors, the market was forecast to be in surplus in 2025. Bloomberg is reporting that Brent’s prompt spread has narrowed signalling some easing in the market.
  • Later the Fed’s Jefferson, Waller and Logan speak and US January Challenger job cuts, jobless claims and Q4 productivity/ULC print. Oil markets will be focussing on Fridays’ January payroll data with consensus expecting a 170k rise in jobs (see MNI US payrolls preview). The BoE is expected to cut rates 25bp. Also German December orders, euro area December retail sales and Canada’s January PMI are released.