Market Mayhem: Israel-Iran Sabre Rattling and Its Impact on Energy Prices
The energy markets had an itchy trigger finger as Israel and Iran heightened their sabre rattling that had initially stoked fears of a potentially massive escalation. Fortunately, the actual activity more resembled a scripted WWE match with telegraphed pulled punches and fake chair smashes across the head. The final retaliation by Israel was essentially a stern warning, with limited damage and no lives lost in the offensive. Devon – get the tables. Fittingly the reaction by oil traders amounted to nothing more than an exaggerated yawn, as the safety relief valve was released and pressure temporarily subsided. Of course, this global game of chicken is serious business, but the face saving measures that were implemented are at least a good sign that a diplomatic solution is something desired by all sides. Assuming the latter, it’s likely that oil prices will stay range bound for a while and it’s likely we’ll see 80 before we see 100. Oil prices dropped 2.5% last week, the second consecutive weekly decline. Brent crude futures settled Friday at 87.29 per barrel, and WTI hit the tape at $83.14.
On the equities channel, Wall Street continued to slip as it searched for some solid footing. The S&P 500 had its worst weekly performance in over a year. Paradoxically, it was because of unexpected stronger economic data which goaded the Fed into kicking the interest rate cut can down the road yet again. It has now been 3 months in a row of stronger than expected inflation numbers. Congrats to everyone who locked in a 3% mortgage. It might be a while before we see that again. Meanwhile, the U.S. is considering banning Chinese-owned TikTok, while China wants to retaliate by telling Apple to delete social media apps WhatsApp and Threads from China’s app store. So basically we won’t be able to watch Chicksintheoffice, Taylor Swift videos and a donkey playing with a rubber chicken while we “work” remotely from home anymore? At least that’s better than missile and drone attacks.
Rest assured, The Tank Tiger online digital platform is not a Tiktok app. Last week was insanely busy in our global headquarters in Princeton, NJ as we fielded inquiries for storage requirements for Ethanol, Base Oil, Renewable Diesel, UCO, Methanol, Fuel Oil, ULSD, mixed distillates, VGO, Transmix and White Oil. We also listed a terminal for sale in New England. If you’d like to see these inquiries, as they occur, just let us know. Or simply sign up for free on our online digital platform mytanktiger.com and have it all at your fingertips in real time.
