Zignox

The demand-supply equation is beginning to push oil prices up, and the threat of inflation may revive restrictive policies by global central banks.

Upgrade reflects better-than-expected macroeconomic and fiscal performance amid successive shocks in recent years, proactive policies and reforms, credit rating company says. Outlook is stable.

As the oil demand remains firm for now, the partial abatement of inflation in the US and other global economies, is reinforcing the perception that the crude demand might surge soon. Adding to the complexity of the scenario, the upcoming hurricane season could potentially bring storms not only to the Atlantic coast but to the markets.

In a world enduring long-lasting armed conflicts, as well as economic and technical barriers to deploy alternative energies, the replacement of fossil energy will not advance at the speed the IEA assumes in its most recent projection.

The oil market seems to have found a reason for its optimism, but the upside potential remains evasive amid the prospect of interest rate hikes, which are still seminal to the Fed and the European Central Bank policies. A meager economic recovery in China can also curb any initial enthusiasm.

Despite expectations of a potential recession induced by rising interest rates, the oil global demand continues to track at 101 MMbpd with no signs of slowing down anytime soon. How a still hawkish monetary policy will affect the global energy balance?

A potential nuclear and oil agreement with Iran may bring as much as 1 million barrels of oil to a market constrained by economic recession fears.

OPEC+ announcements try to bring order to its members, which together represent ~40% of world production, in a market where the other 60% do not seem to be able to orchestrate a cohesive or adaptive policy. The cartel is making a remarkable 'call', but given the divisions within its ranks, it is uncertain whether it will be a successful one.

(NEW YORK, MAY 31)* - Brazil's President Lula voiced his support for a *South American currency* during the Unasur Summit in Brasilia, while also throwing his weight behind Venezuela's bid to join the BRICS group, LatinFinance reported.