Oil commentary - 7 November 2024
Morning all. Brent is trading this morning at $75.59, up 0.67, and WTI is trading up 0.56 at $72.25. I know, I know, I know! I know what you’re all thinking. Where on earth were you yesterday, Stanley? Hmm? How, of all days, could you miss sending commentary on such an important day? I know. I’m sorry.
For those who don’t know, yesterday was World Saxophone Day. Saxophone Day is celebrated on 6 November each year, honouring the birthday of the instrument's inventor, Adolphe Sax, born in 1814. I am so sorr… WAIT A MINUTE. You don’t mean that, do you? You mean the return of his TRUMPISHNESS. For those who don’t own a television, a phone, or a tablet (in which case you probably don’t read this commentary either), Donald Trump was elected the 47th President of the USA.
Honestly, you’d have to go back to Michael Thomas at Anfield in 1989 to see a better comeback. I mean, slap my leg and call me Judy, the lad just went and gosh dang done it, didn’t he? (Do you like my American there? Think that would pass a Trump immigration test? No? Too early? Fair.)
But let’s not get bogged down in foreign policy or anything like that. Yet. Let’s look at how the markets reacted, shall we? Well, if your first name is Bit and last name is Coin, then you did pretty bloody well, didn’t you? Equities did well and the US dollar went bid. Oil had one of those whipsaw days, which is no surprise. It went something like this: yeah yeah yeah, nah nah nah, and definitely NO, then closed the day pretty much where it opened, albeit slightly lower on the day. We hit a high of $75.98 and a low of $73.34. Slap bang in the range where we more or less have been all year.
Considering the volatility attributed to the “Trump Trade”, I’d argue that things are actually remarkably calm – which concerns me more than if there’d been a 10-buck range yesterday. Over the next week or so, I’ll dive deeper into what we can expect from Trump: The Return. And when I say “I”, I mean I’ll mostly be stealing my colleagues’ work and passing it off as my own (with citations, of course) – but what’s new there!
I’ll leave you with this though: after Donald Trump’s somewhat humbling victory speech yesterday, where he mentioned “liquid gold” quite a few times, he said, “I just said, ‘But Bobby, leave the oil to me. We have more liquid gold – oil and gas. We have more liquid gold than any country in the world. More than Saudi Arabia, we have more than Russia.” Hmm. Drill, baby, drill? You’d better believe it.
Good day.