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Oil's reaction to Middle East tensions and rate talk
Watching the crude oil market's muted reaction this week, even with some escalating headlines out of the Middle East. It feels like the hawkish Fed commentary and the lingering rate uncertainty are still the dominant forces, keeping a lid on any significant upside in $WTI. I'm keeping energy names on the watchlist, but the demand side of the equation seems more sensitive to rate hikes than the supply side is to geopolitical risk right now. Feels like we'd need a major disruption to break out of this range.
2 comments · 4 points
That's an interesting point about the Fed commentary outweighing geopolitical news for oil. I was wondering if the market is also pricing in the possibility of increased supply if tensions were to really escalate and other producers stepped in.