Victor Shum
Victor Shum
built disruption immediate potential premium price prices risk supply threat
The potential supply disruption risk premium has already been built into the price and because there really is no immediate threat to supply ... prices are correcting downwards.
In the short-term, it is all about geopolitical drama.
inevitably last prices week
Because the surge in prices last week was so strong, inevitably there is profit-taking.
certainly correct depending few market next players possible problems uncharted
In the next few days, depending on how the geopolitical problems play out, it is possible the market would correct as players take profits, ... But for now, we certainly are in uncharted territory.
few generally inventory market past report
In the past few weeks, right before the announcement of the inventory report the market generally comes down.
affect embargo iran lead occur oil prices raise respond revenue sanctions spike whether
Iran individually can't raise prices ... whether Iran will respond to sanctions with an oil embargo may lead to a spike in prices. But I don't think it will occur because it will affect oil revenue to Iran.
less portion power types
If you have a portion of your power requirement generated by nuclear, there is less of a need for other types of fuel.
approach continue decline driving gasoline inventory issue last market report stock summer
Gasoline inventories in the U.S. continue to be an issue in the market because last week's inventory report showed a stock decline as we approach the summer driving season.
behind caused disruption nigerian oil
Geopolitics is behind the surge in oil pricing... The Nigerian unrest has caused a disruption in supply.
behind caused disruption nigerian oil
Geo-politics is behind the surge in oil pricing... The Nigerian unrest has caused a disruption in supply.
attempt expect market news react short term volatility
Expect volatility in the short term and the market will attempt to react to news with an upward bias.
friday gained kicking oil path people sold storm strength themselves toward
But then the storm reloaded over the weekend, gained strength and set on a path toward the oil facilities, ... The people who sold on Friday are probably kicking themselves now.
above events hit level middle prices settled
With all these events in the Middle East, prices hit the psychological level of 70 (dollars) and settled above it.
crude cut fears iranian market reacting supply
This reduces fears about an Iranian crude supply cut and the market is just reacting to that.