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Daniel Lacalle, chief economist and investment manager at Tressis Gestion, reports that energy prices are declining as U.S. crude falls below $72 per barrel. The drop comes amid news of record supply from the UAE and production increases from OPEC+ and the United States, which have helped to reduce geopolitical concerns.
Lacalle also highlights that the futures curve remains in backwardation despite the recent decrease in spot prices.
Earlier this year, Daniel Lacalle reported on U.S. WTI oil prices falling below $69 per barrel as geopolitical risks eased and supply normalized. He has also noted that the U.S. dollar index climbed above 100 amid record global demand for U.S. assets. These developments have set the backdrop for recent movements in energy and currency markets.