Staying well within the $55-65 price range, crude is not reacting to inventory updates or supply and demand data generally. For what is driving the price resiliency is the mounting tension in the Middle East. Months of ship holing, tanker seizure and attempted seizure, and the huge naval and air armada currently in theater and steaming into it have traders on edge. As yet, the price is stable within its range. However, with so much fuel accumulating in the volatile region, the US administration tightening the economic and financial nose week in and week out, and the Iranians expressing their chaffing but doing so without falling into the US trap, it seems like it is only a matter of time before the wire is tripped.
US-China trade conflict steams ahead
Weekly Report - 15/07/2019