Arkea AM says geopolitical risk premium lifts WTI above $90 as oil rallies 10.36% in five sessions
XLE•Firm US data, ECB outlook and equity moves
US data stayed firm; weekly jobless claims fell to 187,000, lifting the 10-year Treasury yield 13 bps to 4.68%.
Euro zone PMIs improved; the ECB held rates on July 23, with a 25-bp hike in September now the base case.
Equities wavered ahead of big tech earnings; the Nasdaq fell 1.62% on the week, the S&P 500 slipped 0.61%, and the Euro Stoxx 50 rose 0.8%.
Geopolitics and Middle East risks drive oil higher
Arkea Asset Management flagged geopolitics as the main market driver, citing the effective closure of the Strait of Hormuz and heightened Middle East risk premia.
WTI jumped 10.36% in five sessions to above USD 90; Brent briefly topped USD 100 on July 23, then eased to about USD 98.
