RE:RE:Oil prices rising as so is sentimentToday's oil price increase of more than 3% is due to the US (Biden) imposing sanctions on Russia's largest oil sellers but oil is also up almost a $7 in the past week . Clearly the latest sanctions were placed conveniently a week before Trump takes office to increase oil prices and diminish his chances of reducing inflation. It also sets up Trump to look like he favours Puting if he were to reverse that decision.
If you have been following the oil markets the past several years, in my opinion they are displaying a news/price bias. Now that Trump is poised to take office, he will be doing so at $80+ oil. Previously any news regarding sactions, had little to zero affect on oil prices but that has now reversed to where the narrative has shifted from mostly dismissing bullish news and containing oil prices to escalating oil prices on supportive news despite the bearish factors that still persist.
We also see that oil prices are up 3% today but most Canadian oil stocks are down. I haven't seen much related to why that is but assume it could be Tariff related. We will have to keep an eye on the WTI/WCS spread to see if the 25% tariff results in a larger discount, and if so would imply we share the price increase/burden of the tariffs.