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Energy markets have received a lift off the bottom of late as risk appetite normalizes somewhat. Oil needs to receive more news before moving higher, according to analysts at TD Securities.

Key quotes

“Improved cracks and extremely low crude prices prompted some independent refiners to load up on cargoes for Q2 delivery, implying the worst of the demand shock may have been seen”. 

“Furthermore, broad-reaching sanctions on Rosneft Trading S.A. and few signs that a cease-fire may be brokered in Libya, also offer modest support to the complex.” 

“Before energy markets can make a sustainable move higher, an OPEC+ response is going to be needed at the March meeting, and thus far Russia is seemingly reluctant to participate in further curtailments.”

“On the CTA front, we do not expect any material moves, while gasoline is trading in whipsaw territory, which could see buying above $1.635/gal.”