Morning Brief – Oil

Oil

With WTI at $63.28, it’s lowest level since May, oil prices yesterday marked the sixth trading session in a row when prices have fallen. It’s based on two factors: supply or in the market’s view potential over supply plus ongoing and non receding Covid infections threatening to derail the global economic recovery. Those who were confidently predicting a $100 oil price by year end 2021 have gone a bit quiet, but here’s the thing: surely the colossal economic stimuli leading to an inflationary environment argument must include a higher oil price, so either there really is no threat of inflation as US Federal Reserve President Jay Powell claims, or there is, in which case expect oil to rise once again. EUR at $1.1685. 10 Year US Treasuries yielding 1.24%.

Poland and LGBTQ

Strictly Catholic Poland has offended the EU which fully embraces LGBTQ by a regional polish council declaring that it wishes to be a LGBTQ free zone. The EU has written to Poland warning them to change their stance on this or risk being excluded from receiving EU funding. With EUR 2.5 billion of funding at stake, the southern Malopolska region of Poland is being heavily leaned on into reversing its preferred policy. At PLN 4.58 v EUR the Polish Zloty is a little weaker.

Amazon

In case you have lost track, the market value of Amazon is USD 1.59 trillion, and the latest development for the online platform that sells just about everything is that they are going to open a few department stores on the West Coast of America and if that pilot is successful, they will open more such stores across the USA and beyond. The concept of department stores has largely fallen out of fashion with the exception of some brands that have managed to stay relevant and current in their offering. Supermarkets will watch nervously since with the acquisition of WholeFoods, Amazon has completed the preparatory work for an all out assault on Walmart and other supermarkets globally. At $3,200 Apple shares are pretty much in the middle of their 52 week range of between $3,773 and $2,871.

Carlos Santana

The 1960-70’s Mexican-American guitarist famous for fusing rock n’roll with South American jazz has won a plethora of awards in his long career-he is only 74 by the way-and this day in 1996 he finally received his star in the Hollywood Walk of Fame. Here is one of his greatest songs from the album Supernatural: Smooth:

Man, it’s a hot one
Like seven inches from the midday sun
Well, I hear you whisper and the words melt everyone
But you stay so cool
My muñequita, my Spanish Harlem Mona Lisa
You’re my reason for reason
The step in my groove

And if you said this life ain’t good enough
I would give my world to lift you up
I could change my life to better suit your mood
Because you’re so smooth
And it’s just like the ocean under the moon
Oh, it’s the same as the emotion that I get from you
You got the kind of lovin’ that can be so smooth, yeah
Give me your heart, make it real, or else forget about it

But I’ll tell you one thing
If you would leave it’d be a crying shame
In every breath and every word
I hear your name calling me out
Out from the barrio
You hear my rhythm on your radio
You feel the turning of the world, so soft and slow
It’s turning you round and round

And if you said this life ain’t good enough
I would give my world to lift you up
I could change my life to better suit your mood
Because you’re so smooth
Well, and it’s just like the ocean under the moon
Well, it’s the same as the emotion that I get from you
You got the kind of lovin’ that can be so smooth, yeah
Give me your heart, make it real, or else forget about it

Well, and it’s just like the ocean under the moon
Oh, it’s the same as the emotion that I get from you
You got the kind of lovin’ that can be so smooth, yeah
Give me your heart, make it real, or else forget about it

Have a Great Weekend!

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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