Tidbits, PMI, Crude Oil, Cattle on Feed, Export Sales 1/24/26
- Wright team
- 2 hours ago
- 4 min read
Tidbits
The U.S. Composite Purchasing Manager Index (PMI) was reported yesterday morning by S&P Global to be 52.8; the market expected 51.9. The “composite” PMI is the manufacturing and service sector combined. A PMI above 50 means purchasing managers plan to buy more supplies for their business in the coming month than they purchased the previous month. It is a forward looking economic indicator.
Crude oil: A few days ago, the French navy intercepted a shadow fleet tanker carrying Russian oil in the Mediterranean Sea. The French said the seizure of the Grinch Suezmax tanker was conducted in full compliance of the UN Convention on the Law of the Sea.
Saudi Aramco’s chief executive officer said Thursday at the World Economic Forum that the forecasts of a massive oil glut are seriously exaggerated as demand keeps rising and global stocks are below the five-year average. Furthermore, he said, global oil stocks are low, while the crude oil in floating storage on tankers are mostly sanctioned supplies as spare storage capacity has dwindled over the past year which limits efforts to boost output in case of major supply disruptions.
Still, many analysts insist the market is oversupplied as reflected with only brief spikes in oil prices in recent weeks driven by geopolitical developments. Most investment banks and the EIA forecast that average oil prices will be below $60 per barrel in 2026 due to an emerging and persistent market oversupply, especially during the first half of 2026.
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