Upside risks a distraction from bearish oil market fundamentals

The news flow and price reaction in the oil market this week, with oil prices rising in the first half of the week as a result of geopolitical risks and falling later on following the assessment of bearish fundamentals, encapsulated the key factors that will shape the oil market in the coming year or so. Elsewhere, there are early signs that demand from Chinese investors may be buckling under the weight of the rapid surge in gold prices. Although, in the context of the current momentum of the market, we wouldn’t be all that surprised if gold managed further gains, especially with the Fed set to cut rates next week.