As bullish sentiment continues to build and Brent settles comfortably above the $90 mark, oil prices look set to continue to climb this week.- German industrial production finally broke through the cycle of gloom after it posted a 2.1% increase in February, well above the consensus expectation of a 0.5% rise month-over-month.
- Although Germany’s manufacturing is still below its pre-pandemic levels, the surprise hike in activity fuelled this week’s copper rally and reinforced the expectation of the ECB cutting rates from June onwards.- In contrast to actual figures, business sentiment in Germany remains sour as the S&P Global PMI index dropped as low as 41.6 in March, from 42.5 in February, suggesting the country’s manufacturers don’t necessarily share the optimism.- Europe has been the laggard continent in terms of rising commodity demand as oil demand keeps on trending flat, electricity demand has now declined for two consecutive years, and steel production has fallen to its lowest level on record. Market Movers- UK-based oil major Shell LONSHEL and Saudi Aramco TADAWUL2222 are reportedly vying for the LNG assets of Pavilion Energy, a trading firm set up by Singapore’s Temasek, in a deal that could be worth 2 billion.- UK oil major BP NYSEBP is reportedly nearing an agreement with Anglo-French upstream firm Perenco to divest its Amherstia, Cashima, and Immortelle gas fields in Trinidad and Tobag