Highlights
Oil prices posted a second weekly gain as bullish sentiment builds and the prospect of a prolonged price rally becomes increasingly likely according to oilprice.com analysts.
The fact that the US Federal Reserve has at last initiated a new cycle of monetary easing should have prompted a stronger market response. With a weaker dollar and an improved macro risk outlook, next week could see further upside as crude oil inventories in the United States have dropped to their lowest level in a week, posting another week-on-week decline to 417.5 million barrels, with stocks particularly drained in the Midwest, where they dipped to their lowest since December 2014.
Brazil is buying huge amounts of liquified natural gas (LNG) to generate electricity because hydro-electric generation is running out of water. The first 8 months of 2024, Brazil imported 25 cargoes of LNG, but that number will double over the upcoming months as summer is approaching and hydro dam capacity stands at a mere 53%. Under normal conditions, water generates over 90% of Brazil's electricity.
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