Weekend Update

By: Pam Corn / April 16, 2018

On Saturday, the U.S., France and Britain retaliated against Syria over suspected chemical attacks a week ago. Missiles struck the heart of the country as a scare tactic against Syria's President Bashar al-Assad. This was the biggest military intervention in the seven year civil war against Syria and Russia. However, the Western countries said the strikes were limited and targeted at Syria's chemical weapons facilities keeping the mission disengaged from the civil war.

Syria_Oil_Gas_580px

Chief marketing analyst of Think Markets, said, "The focus will be on the counter-reaction of Russia." If the missiles were directed at Russia and Iran, oil prices would really keep moving higher. There would be very little impact on prices from the attack on Syria, they haven't exported since the start of the civil war in 2011. Iran has been delivering 50,000 barrels of oil a day to Syria's Banias terminal, President Trump has until May 12th to extend a waiver on sanctions that are suspended by the nuclear deal with Iran.

Many oil traders had already locked in positions ahead of the weekend in case the Western countries did move forward with missile strikes sending both West Texas Intermediate and Brent crude to their highest since 2014.

This morning, oil markets are digesting all the geopolitical risks currently and profit taking seems to be leading the way. As of 9:30 am EST, WTI is down $0.59 at $66.80, HO is down $0.0125 at $2.0877, and RBOB is down $0.0173 at $2.0481.

"The news flow is actually better than what it looked like at one point during last week as the strike was surgical, followed by a pullback. Reports show a lot of care was taken not to hit Russian targets, which is a good sign and the market should take heart from that," said Salman Ahmed, chief investment strategist at Lombard Odier.

As investors await potentially healthy U.S. company earnings, last week ended with the best weekly gain in over a month.

 

Sources

https://www.reuters.com/article/us-mideast-crisis-syria-markets/oil-gold-to-gain-on-syria-strikes-russian-retaliation-in-focus-idUSKBN1HM0JI

https://www.washingtonpost.com/business/the-real-worry-for-oil-prices-isnt-missiles-over-syria-gadfly/2018/04/15/e86513e6-4083-11e8-955b-7d2e19b79966_story.html?noredirect=on&utm_term=.3b2a7dc6961d


Categories: Industry Update


Written by

Pam Corn


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