Ordinarily comfortable inventories would mean lower prices -- probably closer to fifty-five dollars. But the Iran situation, and several smaller actual interruptions to crude supply, are keeping prices higher.
I understand that some of the demand from fabricators has fallen away as the price has risen.
The U.S. inventory data clearly worried the market, but the Iranian and Nigerian situations are providing support to prices.
The Iran-U.N. row and potential for economic sanctions reminds us that geopolitical situations remain a key factor in giving support to oil prices.
The Iran issue is the driver of the day, the extra factor causing the run-up in prices, but the basic thing underlying the industry is that global demand remains very strong.
The Iranian issue is hanging over the market. There's a big bogey there in the form of Iran and these smaller issues that are making real impinges on supply.
The basic thing underlying the industry is that global demand remains very strong.
There's unlikely to be a quick return of output, and the market is certainly pricing in all of these various geo-political threats.
Something that could have squeezed supply a bit tighter would be a sustained cold snap and there just hasn't been the cold weather in the U.S. yet to test out just how well the market can supply.
More sugar coming onto the market will lower prices.