🚨 Brent just opened $4 higher.
Not a headline spike this time. A weekend repricing.
Friday: ~$104
Sunday open: ~$108
The market had two days to digest Yanbu explosions, the East-West pipeline outage and reports that stored crude there may cover only 5-7 days while repairs could take weeks.
At the same time, Gulf states are talking to Iran in Oman about a temporary Hormuz arrangement.
Oil traders looked at diplomacy, looked at the storage math, and chose the storage math.
The bigger problem is now rates.
Producer inflation: 5.4%.
Diesel: ~$6/gallon.
30-year Treasury: 5.36%.
6 months ago this was a war story.
Now it is a monetary-policy story. With missiles flying.
Source: Reuters, CME FedWatch
Not a headline spike this time. A weekend repricing.
Friday: ~$104
Sunday open: ~$108
The market had two days to digest Yanbu explosions, the East-West pipeline outage and reports that stored crude there may cover only 5-7 days while repairs could take weeks.
At the same time, Gulf states are talking to Iran in Oman about a temporary Hormuz arrangement.
Oil traders looked at diplomacy, looked at the storage math, and chose the storage math.
The bigger problem is now rates.
Producer inflation: 5.4%.
Diesel: ~$6/gallon.
30-year Treasury: 5.36%.
6 months ago this was a war story.
Now it is a monetary-policy story. With missiles flying.
Source: Reuters, CME FedWatch
