Crude Oil Bounces Back – Finally, Some Good News
After a stubborn streak of losses that began last Friday, crude oil is finally flipping the script and climbing almost 1% per day. If you thought the market was feeling a bit sleepy, it’s finally wide awake.
Why the Surge?
Turns out US services were a bright spot: they’re not only showing signs of steady growth in Q3 but are also keeping customers and cash flowing. Meanwhile, manufacturing is still in the trenches, shrinking faster than a bubble at a soda tasting contest – the fastest slide in 14 months. New factory orders kept dropping, and that’s the signal homeowners and big‑name factories are hinting at.
In the eurozone, the story is a mixed bag, which is a recipe for uncertainty in oil demand. Private sector growth is still tick‑in‑ing, but new orders, employment and general sentiment are all looking pretty gloomy. The PMI reports? They’re heading toward the lowest they’ve been all year.
Geopolitical Drama – The Red Sea and Beyond
- Middle East tensions could still stir the pot, though markets seemed to shrug off the risk of supply displacements.
- War in Gaza? It’s been a major red‑flag on navigation, flights and boycotts – a classic example that “war has surprises.”
- Negotiations in Cairo are back on, but the vibe is not promising. With Hamas skipping the talks and Netanyahu keeping his hold firm, a breakthrough looks unlikely.
And to top it off, US State Department officials are calling out “maximalist” statements as non‑constructive. “We’re not buying the promise without a guarantee,” a source told The Associated Press, adding that the ceasefire remains a wish‑upon‑stars for many.
So, What’s Next?
We’re keeping our eyes on Powell’s remarks at Jackson Hole and the latest on Gaza’s ceasefire. If the market’s tooting a bright optimism flag, just remember – the oil story is still a rollercoaster, not a straight line.
