Phil Flynn is writer of The Energy Report, a daily market commentary discussing oil, the Middle East, American government, economics, and their effects on the world's energies markets, as well as other commodity markets. Contact Mr. Flynn at (888) 264-5665
Risks of war may be on the rise after Saudi Arabia told all its citizens not to travel to Lebanon and urged those that are in the country to leave as soon as possible. The tensions are rising after the Lebanese Prime Minister Saad Hariri resigned in Saudi Arabia but is now currently missing and his party the “Future Movement” is saying that Saudi Arabia is holding him against his will. The Saudi Crown Prince is asserting his authority at home and abroad.
At home he continues his corruption crackdown. Freezing the bank accounts and jailing members of the royal family. Now he is targeting Lebanon who he believes is allowing Iranian backed Hezbollah to influence Lebanese’s politics. The call to get out of Lebanon is being a possible signal that Saudi Arabia may be about to attack.
Already the crown prince said last week that a ballistic missile launched at the kingdom by Yemeni rebels was a “direct military aggression by the Iranian regime,” and that it was an act of war. Lebanon is being a pawn between the Sunni Saudi’s and the Shia Iranians. The proxy war may boil over and turn into a direct Saudi virus Iran match up. Mounting political risks will keep oil supported.
This comes as there are signs that the global oil market is tightening significantly. Reuters reports that the amount of oil stored on tankers around Singapore has dropped sharply in the last months, in what they say is the latest indication that OPEC-led supply cuts are successfully tightening crude markets even as U.S. exports have soared. Reuters says that shipping data in Thomson Reuters Eikon shows around 15 super-tankers are currently filled with oil in waters off Singapore and western Malaysia, storing around 30 million barrels of crude. That is half the number of ships in June and down from 40 tankers holding surplus fuel in mid-2017.
This matches up with what we have been hearing from our contacts. Oil and product demand is soaring. Oil products like gas and diesel are tightening and we are in a major tightening cycle. Depending on the news flow many may not want to be short over the weekend. The fundamentals are becoming clear.
Snowflakes in Chicago. That is music to natural gas bulls. The EIA reported a +15 Bcf change in storage, that compared to the +54 Bcf change last year and +45 Bcf change for the five-year average.
With the first big cold front of the year descending on the nation, is it too early to be thinking about the Money Show in Orlando in February? Absolutely not! Go to the Money Show website and get signed up before space runs out. Make sure you stay tuned to the Fox Business Network all day long to get the latest on Politics and Money! We have kept our long term bullish outlook on oil all year and now others are getting on board.
Has the new oil super cycle already begun? Find out why oil prices are at a two and a half year high and why they are probably going to go a lot higher. Call for my latest report at 888-264-5665 or email me at email@example.com.
Questions? Ask Phil Flynn today at 312-264-4364
A Subsidiary of Price Holdings, Inc. – an Employee Owned Diversified Financial Services Firm. Member NIBA, NFA
Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also involves a high degree of risk. The leverage created by trading on margin can work against you as well as for you, and losses can exceed your entire investment. Before opening an account and trading, you should seek advice from your advisors as appropriate to ensure that you understand the risks and can withstand the losses.
The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or futures. The Price Futures Group, its officers, directors, employees, and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction. Reproduction and/or distribution of any portion of this report are strictly prohibited without the written permission of the author. Trading in futures contracts, options on futures contracts, and forward contracts is not suitable for all investors and involves substantial risks. ©2017
SubscribeReceive daily summaries of all Market Insights blog posts.
Enter email below.
Most Recent Posts
- Morning Grains Report 03/23/18
- Morning Softs Report 03/23/18
- Free Markets for Free Men. The Corn & Ethanol Report 03/23/18
- Trade Tiffs and Crazy Cuts. The Energy Report 03/23/18
- Morning Grains Report 03/22/18
- Morning Softs Report 03/22/2018
- Tariffs Latest Market Jitters. The Corn & Ethanol Report 03/22/18
- Fed Raises Rates, Cattle on Feed. The Nemenoff Report 03/22/18