The possibility for a non-benign solution to the dispute leaves open the risk for higher prices in the short term.
Given the overall positive sentiment and an apparent lack of interest to short the marker aggressively, we see further room on the upside.
Crude oil was the one thing not in short supply. What the U.S. lacks is oil products, especially gasoline, and it lacks the spare capacity to refine more crude.
After the very strong pickup in U.S. growth data over the past few weeks, we believe the risk of a sharp slowdown in commodity demand looks negligible in the short term.
After the very strong pick-up in U.S. growth data over the past few weeks, we believe the risk of a sharp slowdown in commodity demand looks negligible in the short term.