https://www.dailymail.co.uk/news/articl ... =applenews
You never want to piss off a "Reaper".
Iran’s supreme leader, Ayatollah Ali Khamenei, warned that a “hard revenge awaits criminals.”
Details of airstrike that killed Iranian general
Details of airstrike that killed Iranian general
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Details of airstrike that killed Iranian general
Note from Aegis Energy at 10:42 AM CT
Direct Attacks on Iran Increase The Likelihood of Oil Upsets
January 3, 2020
If the U.S.-Iran tensions don’t simmer down, oil prices could remain elevated as the market worries about supply disruptions. However, if it proves to be a short-term risk, producers will look back on this as a missed opportunity for improved pricing.
AEGIS clients have been very active in trading today, locking in higher pricing for 2020, but also the back of the curve through 2023 as it was elevated this morning.
The oil markets (and other markets) are tense today after the reported killing of Iranian general Soleimani in Iraq.
No oil infrastructure was directly endangered by the events overnight.
However, the tensions between Iran, the U.S., and Saudi Arabia have recently resulted in attacks and threats on oil and transportation, the most effective being September’s attacks on Saudi Arabia’s oil processing facilities. Iran was blamed by several countries, including the U.S., for that attack.
Therefore, the recent mob at the U.S. embassy in Iraq, and the killing of the Iranian general create nervousness around what may happen to Middle East oil supply.
The crude oil forward curves were already steeply backwardated (i.e. downward sloping, with a large premium for near-term delivery, and implied tightness in the next several months), and the recent U.S./Iran events serve to further threaten supply.
Due to OPEC voluntary supply cuts, spare capacity remains ample, but within close proximity to Iran in the Middle East. The extra supply that OPEC could produce would ordinarily dampen the bullish effect of potential supply outages, but the source of most of the OPEC spare capacity comes from Saudi Arabia, who is implicitly in the current conflict.
Details and charts here: https://aegis-energy.com/direct-attacks ... il-upsets/
Direct Attacks on Iran Increase The Likelihood of Oil Upsets
January 3, 2020
If the U.S.-Iran tensions don’t simmer down, oil prices could remain elevated as the market worries about supply disruptions. However, if it proves to be a short-term risk, producers will look back on this as a missed opportunity for improved pricing.
AEGIS clients have been very active in trading today, locking in higher pricing for 2020, but also the back of the curve through 2023 as it was elevated this morning.
The oil markets (and other markets) are tense today after the reported killing of Iranian general Soleimani in Iraq.
No oil infrastructure was directly endangered by the events overnight.
However, the tensions between Iran, the U.S., and Saudi Arabia have recently resulted in attacks and threats on oil and transportation, the most effective being September’s attacks on Saudi Arabia’s oil processing facilities. Iran was blamed by several countries, including the U.S., for that attack.
Therefore, the recent mob at the U.S. embassy in Iraq, and the killing of the Iranian general create nervousness around what may happen to Middle East oil supply.
The crude oil forward curves were already steeply backwardated (i.e. downward sloping, with a large premium for near-term delivery, and implied tightness in the next several months), and the recent U.S./Iran events serve to further threaten supply.
Due to OPEC voluntary supply cuts, spare capacity remains ample, but within close proximity to Iran in the Middle East. The extra supply that OPEC could produce would ordinarily dampen the bullish effect of potential supply outages, but the source of most of the OPEC spare capacity comes from Saudi Arabia, who is implicitly in the current conflict.
Details and charts here: https://aegis-energy.com/direct-attacks ... il-upsets/
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group