Geopolitical Overview
Over the course of this week, the conflict between the U.S. and Iran has escalated significantly. Iran carried out missile and drone attacks on U.S. bases in several Gulf states. The U.S. responded by expanding its military strikes against Iranian military infrastructure. Shipping traffic in the Persian Gulf remains disrupted.
Oil Price
$CRUD (+0.4%) is in a consolidation phase between 78.00 and 81.50 USD. Such phases with such narrow price ranges rarely last long. Generally speaking, we can expect oil to gain further upward momentum in the coming days. The EIA Weekly Petroleum Status Report paint a picture of a tight oil market. U.S. crude oil inventories fell by 1.7 million barrels—more than expected—while refineries operated at a capacity utilization rate of 96.2%. As mentioned in the article Commodities | Long Oil? , CTAs are now positioning themselves accordingly.
