June WTI crude oil futures today settled higher by $4.48 to $106.42 but I’m more interested in longer-dated contracts that continue to creep up.
June WTI crude oil futures today settled higher by $4.48 to $106.42 but I’m more interested in longer-dated contracts that continue to creep up. That’s arguably where bonds and equities have traded off since the conflict.
Early on, the market mostly took Trump at his word that oil would come down after the conflict. There was some sense that the US had a plan. That no longer seems like the case and December WTI was also up $4.14 today to $83.67.
That broke the previous high set on March 23 and is a strong signal that patience is running out. Today Iran attacked UAE oil infrastructure and showed it will not willingly allow the US to escort ships out of the Strait of Hormuz, let alone allowing them back in (something Trump said he doesn’t want to do for now). And the clock continues to tick with the war now in its 10th week compared to the 4-6 week plan.