The small retreat is probably due to the dollar coming back a bit.
The continuation of cool weather in the United States is expected to bring big spikes in heating fuel demand.
Ordinarily comfortable inventories would mean lower prices -- probably closer to fifty-five dollars. But the Iran situation, and several smaller actual interruptions to crude supply, are keeping prices higher.
The Iranian issue is hanging over the market. There's a big bogey there in the form of Iran and these smaller issues that are making real impinges on supply.
The [U.S.] inventory report should show that inventories, of crude and refined products, are comfortable for this time of the year.
The U.S. inventory data clearly worried the market, but the Iranian and Nigerian situations are providing support to prices.
Something that could have squeezed supply a bit tighter would be a sustained cold snap and there just hasn't been the cold weather in the U.S. yet to test out just how well the market can supply.
Inventories are at pretty comfortable levels based on a milder weather outlook, so the chances of a squeeze on supply this (northern) winter are receding.
The Iran-U.N. row and potential for economic sanctions reminds us that geopolitical situations remain a key factor in giving support to oil prices.
Copyright © 2024 Electric Goat Media. All Rights Reserved.