World Fuel Markets React to Escalating Hamas-Israeli Conflict
The obvious market moving story is the impact on world fuel markets of the Hamas – Israeli conflict that appears to be growing more intense by the day. As traders are trying to digest what could turn into a regional mess, expect wild swings for the short term.
At the root is how much, if any, was Iran involved as they have openly backed Hamas. Furthermore, the US and others, have been turning a blind eye to Iran’s oil production in an effort to keep global markets well supplied. It is a tight rope to walk for sure. Putting downward pressure on markets in the US are revised demand figures that are now to said to be about 25% less than originally forecasted through the end of 2025. For a variety of factors which we all are seeing on a daily basis be it better fuel efficiencies, alternative energies, or just a slowdown. Additionally, it started to come out that Saudi Arabia is not abiding by their self imposed cuts, news struck that the Kingdom has agreed to fully supply several far east customers. My sense is that we will bounce around this current range just below $3.00 on the screen before ultimately pulling back some more.
Even though pricing remains high in the near term, it still important to look further out. Next spring distillate pricing remains significantly less than current pricing and some bargains might exist. For budgeting purposes, bidding jobs, or locking in pricing, we can assist you for your organizations specific needs. Schedule a Call