Scanning some of the morning notes I came across this gem from BNZ. Accurate.
Oil prices are up 2-3%. Yesterday's narrative was about concerns that the spread of the delta variant would crimp demand. Today's narrative is that investors are optimistic that oil demand can remain supported despite the virus backdrop! (The truth is that sometimes markets go up and sometimes they go down).
Bolding mine. Seeking an explanation for every wiggle sometimes traps folks into narrative circles.
Sometimes there is a super-obvious cause and effect, like the gold collapse on Monday morning early in Asia trade (Sunday evening US time) - exacerbated by hefty selling (yes, every sell has a buy, but it was the bids being smashed, not the offers, hence a large sell) in the thinnest liquidity time of the week. Not rocket science. Other times narratives are strained to explain moves, best taken with a large grain of salt.
One of the gold charts posted Monday, after the rouboind:
