NewsMV
Brent and WTI crude oil are both lower in early Monday trade while U.S. equity index futures are firming, a split that puts the cross-asset tape in focus.
Treasury bonds and precious metals are also rising, and the Australian dollar is leading G-10 currency gains against the U.S. The crude move Both Brent and WTI are on the back foot to begin the week.
The weakness in oil is running in parallel with a firming equity tape, which rules out the straightforward risk-off interpretation. A demand-shock read on crude would typically drag equity futures lower alongside it.
That equities are moving in the opposite direction suggests the pressure on crude is more likely supply-driven, or that the two markets are responding to separate catalysts at the same time.
Keep reading