The rule of thumb on geopolitical strikes in oil is to fade the pops. Right this moment’s rip on Yemen bombing is yet-another instance. WTI crude oil traded as excessive as $75.28 however has slid all the way in which again to $73.05. It is nonetheless up $1.09 on the day however it’s powerful for ‘worry of battle’ to maintain a bid till/until the bombs really begin falling in a spot the produces oil.
Clearly the dangers of a battle with Iran proceed to ratchet up however we’re not on the level the place it is impacting provide/demand. Furthermore, the US and UK bombing of Houthis may put an finish to the Pink Sea blockages.
WTI crude 15 minutes
