Oil prices are tracking higher on the back of expectations demand in China will rise as the country reopens after a strict covid lockdown. Sage Capital's, Sean Fenton says a passing of the peak of policy tightening in the US is also impacting oil prices, adding that the end of strategic petroleum releases from the US is also tightening the market. Refining margins are also moving higher as the US enters refinery maintenance season and the EU is about to begin sanctions on Russian refined product exports. Sean says the market is looking bullish short term with the view that inflation is receding and the US Fed will be cutting in the back half of the year. However, a rebound in energy prices could derail this by giving a lift to inflation while employment markets still remain very tight.

Filmed on the 24th of January 2023