WTI broke below $60 today in what appears to be relief at the end of hurricane Barry’s moisture laden trip through the Gulf of Mexico where 30% of US crude is refined and lord knows how much of its petrochemical industry works. When hurricane Harvey blew through, refining and chemical supplies were severely curtailed for months raising prices across the boards. A word of caution: The Persian Gulf is a tinderbox larded with warships, B52 bombers, enough firepower to drive the price of crude to 70 is no time should a spark ignite any sort of conflagration. The US has set the trap for the Iranians. The Mullahs are too clever to fall into it. They may not however be able to avoid doing so should their calculations met the unexpected.
Sino American Trade talks buoy US markets
Daily Analysis - 16/07/2019