BRN On Track To Post The First Weekly Gain In Four Weeks?

BRN may be able to post its first weekly gain in the past four weeks following the lower PPI and an uptick in initial jobless claims reading.

Thursday’s macroeconomic releases have boosted the implied probability of an interest rate cut during the Fed meeting next September.

Lower interest rates may boost the economic activity, thus the demand for black gold. However, the higher-for-longer interest rates may hinder the economic activity and as the result the demand for oil.

The demand fears have been partially displaced by OPEC+ keeping its strong demand forecast intact for 2024 as well as Goldman Sachs’ projection of a robust fuel demand in the US during this summer driving season.

According to Reuters US refiners have been processing petroleum at the fastest pace for the time of the year since before the pandemic. During the week ending on June 7, 17.5 million barrels of crude oil were refined per day.

However, an approach of potentially more active than usual Atlantic Hurricane season (June – November) in the US could disrupt the refinery operations on the Gulf coast.  

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