The market is showing signs of upward buying and is really extending gains from last week. The focus is on the supply disruption, primarily out of Nigeria.
A lot of uncertainty remains in how the Iranian situation will work itself out. There is some concern in the Asian market on whether Iran is a reliable supplier.
What the market has found is that the $68-level has a rather strong resistance, and so the contract is now retreating slightly on profit taking.
The market is on edge; it's looking for directions. There's a lot of volatility now, which is characteristic of a tight supply situation.
Because of this, there is concern of a potential disruption in gasoline supplies due to this switch-over.
With lingering concerns over Iran, Nigeria ... the market is correcting upwards because it is focusing on fears in the geo- political realm.
It's a lingering fear [in Nigeria], so even though it is sort of old news, the market is concerned about it.
There is no fundamental reason driving prices back up. Market participants felt that the 60 dollar level is an important mark and dropping below 60 is too much of a fall.
The market is reacting to some rhetoric regarding the Iranian situation.
Copyright © 2024 Electric Goat Media. All Rights Reserved.