From Missiles to Meetings: A Global UNO Reverse in Motion

Lets get this straight, because the last three days of 100 degree temps across the region has got me a little foggy.  In two weeks’ time, Israel and Iran were involved in a 12 day all out war, pushing the world towards the brink of WWIII.   Oil shipping around the world is on the brink of collapse.  Israel clears a window where the US then would all but wipeout Iranian nuclear capabilities without any casualties on either side.   Then a cease fire is declared that both sides honor. Now the US and China want to help Iran rebuild their energy infrastructure?  This is the world largest UNO Reverse card ever played.  The events put panic buying into the Oil sector, with about half of that premium already erased.  Same for the end user as gasoline demand last week jumped to its highest weekly numbers since 2021, and a more conservative monthly rate since last November.  Diesel, while showing some signs of improvement may be under larger pressure as once again monthly trucking tonnage was down 1.3% in May.  The second half of the fear premium will likely take a bit longer to remove from pricing until market players can fully digest the last two weeks and if quasi-Iranian factions adhere to the peace.  This has been a prime example of how volatile fuel markets are, it is critical to have a supplier that keeps you informed.  We are always willing to discuss your specific needs.