i'm entering long on this, expecting price to take the liquidity at the upside.
US President Joe Biden's long-delayed $1 trillion infrastructure bill, which passed both chambers of Congress over the weekend, positive Chinese trade data and upbeat economic sentiment data in Europe paint a more positive picture of the state of the global economy. Despite high COVID cases in some parts of the world, we are also seeing a pick-up in travel, especially after the US started allowing air travelers back into the country after 20 months of strict travel restrictions. With major producers (member states of OPEC+) maintaining strict supply discipline and increasing output only gradually, even though global oil demand is almost back to pre-pandemic levels (around 100 million barrels per day), I expect oil prices to rise further in the fourth quarter. US crude inventories may have risen for a third week in a row, limiting gains for today, but I see oil prices continuing to rise with the stock market also performing well. Lower US government bond yields also reduce the risk of a rapid USD appreciation, which would create a slight headwind for oil prices. We take advantage of the current dip which pushed oil prices back to the bottom of its current short-term range.
US President Joe Biden's long-delayed $1 trillion infrastructure bill, which passed both chambers of Congress over the weekend, positive Chinese trade data and upbeat economic sentiment data in Europe paint a more positive picture of the state of the global economy. Despite high COVID cases in some parts of the world, we are also seeing a pick-up in travel, especially after the US started allowing air travelers back into the country after 20 months of strict travel restrictions. With major producers (member states of OPEC+) maintaining strict supply discipline and increasing output only gradually, even though global oil demand is almost back to pre-pandemic levels (around 100 million barrels per day), I expect oil prices to rise further in the fourth quarter. US crude inventories may have risen for a third week in a row, limiting gains for today, but I see oil prices continuing to rise with the stock market also performing well. Lower US government bond yields also reduce the risk of a rapid USD appreciation, which would create a slight headwind for oil prices. We take advantage of the current dip which pushed oil prices back to the bottom of its current short-term range.