Trump's Tweet Reverses Early Morning Gains

By: Mike Dombroski / October 15, 2018

November WTI traded higher by $1.36/bbl overnight, but a Presidential tweet has reversed the course.

Oil prices were up almost 2% last night over the fear that Saudi Arabia was responsible for the disappearance of Washington Post columnist Jamal Khashoggi, a noted critic of the regime, at the Saudi Arabia consulate in Istanbul, Turkey on October 2nd. Various U.S. government officials have responded that if the Saudi’s were responsible for his disappearance, there would be repercussions for the country which might include economic sanctions. Saudi Arabia responded to those comments with disdain and rejected any suggestion it had a part in Khashoggi’s disappearance. This has sparked the fear that Saudi Arabia, if slapped with American sanctions, could respond with limiting oil exports to the U.S. and its allies. This would obviously be extremely bullish for oil prices, especially when America’s sanctions on Iran’s oil are set to begin November 1st.

trump and saudi king

WTI prices are last trading down $0.38 to $70.96/barrel after President Trump’s tweet this morning which read “Just spoke to the King of Saudi Arabia who denies any knowledge of whatever may have happened “to our Saudi Arabian citizen.” He said that they are working closely with Turkey to find answer. I am immediately sending our Secretary of State to meet with King!” It appears this tweet has taken the winds out of the bull’s sails this morning and now the whole complex is trading in the red. It is possible that the Saudi Arabian King is just trying to save face until some back channeling with the U.S. is complete, but rest assured, this will instill a whole new level of price volatility in the oil complex until it’s resolved.

November RBOB is trading lower by $0.023 to $1.919/gallon and ULSD is trading lower by $0.0136 to $2.3078/gallon.


Categories: big oil, Global Energy


Mike Dombroski

Written by

Mike Dombroski


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us