The latest EIA report once again shows that September was just a data glimpse, and that oil demand is still going relatively strong in the US. Long oil a bet for the last month of 2023?
The EIA demand data remains volatile and slightly out of whack with actual congestion trends. Oil demand has rebounded while new weakness is seen in transportation fuels.
The monthly report from OPEC and the weekly report from the EIA are both out later today. A day of reckoning for oil markets and we see a decent risk/reward in betting on a price bullish surprise.
The weekly EIA report revealed seasonal weakness in the demand for Gasoline, but how big of a deal is it? We have taken a deep look at the numbers and only have one word available. “Ouch!”