This morning the market is continuing its momentum ... from the response to the inventory report from the US. |
This morning the price crept upwards so the market continues to be driven by the short-term geopolitical (pressures) primarily in Nigeria. |
This reduces fears about an Iranian crude supply cut and the market is just reacting to that. |
Today the market seems to adjusting downward because all the upward surge over the past few days was a little overdone. |
Vehicle sales growth has been dramatic compared to last year. This suggests that the future demand for oil products will remain strong. |
We can expect an overall high floor in prices this week. |
What is driving the market are two issues. |
What the market has found is that the $68-level has a rather strong resistance, and so the contract is now retreating slightly on profit taking. |
What's driving the market right now is geo-political concerns. One concern is the situation in Nigeria. |
While Iran has said that they do not intend to use oil as weapon, if [hit by] sanctions, Iran may use oil as a weapon. |
With all these events in the Middle East, prices hit the psychological level of 70 (dollars) and settled above it. |
With lingering concerns over Iran, Nigeria ... the market is correcting upwards because it is focusing on fears in the geo- political realm. |
Working together in a joint venture... is always challenging. Here you're combining different cultures, political systems and both are after some prize assets. |