As long as the prospect of sanctioning 4 million barrels per day of Iranian oil is out there, the Iranian situation, in our view, will be the front and center issue that will command market attention.
Yesterday's sell-off was a shot across the bow, but we don't think the bulls will be heading for the hills anytime soon.
I think we were probably a bit overdone on the upside and there's some profit-taking taking place today.
I think we're moving higher. I think the downward correction could be over.
Commodities seem to be a rather popular alternative (to bonds, equities and the dollar) for funds searching for a trend.
Although many polls show that U.S. consumers are intent on altering their behavior (i.e., driving less), we still have not seen significant structural shifts in behavior.
There are still no signs of a downturn in global economic activity, suggesting that the fundamental backdrop for most commodities, including crude, remains favorable. We'll see if this week's U.S. numbers change any of that.
Sometimes one comes across an especially odd trading day when nothing much makes sense. Yesterday's session was a case in point, with the action in the natural gas complex being particularly puzzling.
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