Still watching energy after the inventory draw
Bit of a head-scratcher with the EIA inventory numbers yesterday. Crude draw was larger than expected, yet we're not seeing a sustained breakout. $XOP is up a bit today, trading at $179.17, but it's still largely consolidating in that range we've been seeing. Seems the market's still weighing global demand concerns against supply disruptions and OPEC+ rhetoric.
My take? The demand story globally is still shaky. China isn't exactly firing on all cylinders, and Europe's growth prospects are meh. So while the immediate supply picture might look tight, the longer-term demand outlook caps any major sustained move upwards for now. I'm keeping energy names on my watchlist, specifically looking for clearer signals on global growth, or a definitive move from OPEC+ beyond just jawboning. Until then, it feels more like a trade than an investment, playing the ranges. Not jumping in big here.
The sustained breakout was never going to happen on a single inventory draw; it's priced in. The market is clearly more focused on the macro demand picture and recession fears than short-term supply blips. Look at the price action in the supermajors for a real read.