Morning Brief – Oil

Humphrey Percy
Chairman and Founder
Wed 21 Jun 2023


WTI Nymex oil was down $1.53 from Friday’s close yesterday at $70.25 despite China cutting two benchmark lending rates by 10bps each for the first time in 10 months. No improvement in demand is discernible and oil traders are looking for signs of a sustained increase in Chinese demand-forecasts suggest an increase in that Chinese demand of 3.5% for this year. Meanwhile Iran is hitting new highs with its output and Russia is increasing its exports of diesel and gasoil despite agreeing at OPEC+ to cut supplies.

UK Grocery inflation

“Down” to 16.5% in the 4 weeks to June 11 from 17.2% in May, the biggest price rises are for eggs, cooking sauces and frozen potatoes (chips). So no good news for the Bank of England’s Monetary Policy Committee as they prepare to sit down today to debate the next move for UK interest rates(up) and by how much.

GBP/USD 1.2725.

European Obesity

Danish drugmaker Novo Nordisk has announced that most of Europe will have to wait the release of Wegovy, so obesity in Europe will continue largely unchecked since the wonder drug has boomed in the USA which has hoovered if not snarfed up all supplies to feed the voracious appetite of America’s obese populace. Wegovy claims to reduce weight by 15% although cynical wags suggest that overweight Americans could easily achieve the same effect by occasionally making use of their legs.

EUR/USD 1.0915.


Doubtless corks are popping at the Paris airshow with news that Air India have placed an order for 470 Airbus and Boeing planes. If that was not enough, IndiGo which is Air India’s biggest rival went one better and ordered 500 Airbus jets. Even Ethiopian Airlines was at it with an order of 130 Airbus and Boeing planes. Qantas on the other hand could only manage to order 9 Airbus jets.

EUR/INR 89.53.

Amazing Journey

As we know the USA and the UK are known as being two nations divided by a common language and this tale proves to be a perfect example of that dictum: this day in 1971 The Who were at Memphis Int’l Airport in the USA when Pete Townsend was overheard by security to say: “Tommy is going down a bomb.” Not up with the Who’s catalogue and never having heard of their smash hit rock opera Tommy, airport security taking no chances having heard the word bomb, pounced on Pete and the band with guns and nightsticks. Oh dear.

Deaf, dumb and blind boy

He’s in a quiet vibration land
Strange as it seems, his musical dreams
Ain’t quite so bad

Ten years old with thoughts as bold as thoughts can be
Loving life and becoming wise
In simplicity.

Sickness will surely take the mind
Where minds can’t usually go
Come on the amazing journey
And learn all you should know

A vague haze of delirium
Creeps up on me
All at once a tall stranger I suddenly see
He’s dressed in a silver sparkled
Glittering gown
And his golden beard flows
Nearly down to the ground

Nothing to say, nothing to hear
Nothing to see
Each sensation makes a note
In my symphony

Sickness will surely take the mind
Where minds can’t usually go
Come on the amazing journey
And learn all you should know

His eyes are the eyes that
Transmit all they know
Sparkle warm crystalline glances to show
He is your leader
He is your guide
On the amazing journey
Together you’ll ride

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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