Deal Signed, Now What?

 Deal signed, now what. Actually it’s a “memorandum of understanding”. Can you imagine the password on that Docusign email! A lot still has to fall into place before we can say we are back to normal. Mine sweeping of the Strait, Israeli acceptance, and finding willing investors in Iran to name a few. Still fuel markets are now shedding that risk premium that has dominated daily life for the past 100 days. With 9 out of the last 10 trading days seeing red, we shed roughly $.60 off diesel and about $.25 off gasoline. There is still $.70 more to go to get back to pre-war levels. Again, it is not going to be an overnight fix, it will take some time for fuel to flow normally. Lubricants may be a different story, ask how DKB can help you there. Fed policy with a new Chairman can also confuse market direction as interest rates remain flat with a signal of an increase later in the year should inflation stick around after a signed deal. Still, it is a good start and we should be somewhat optimistic that better days are ahead.