Mid-Week Review – January 8, 2020

Oil Rally Cools as Iranian Strike Causes No U.S. Casualties

Oil’s rally faded as the U.S said Iranian airstrikes on military bases in Iraq didn’t cause any casualties, reinforcing speculation that Tehran is opting for limited retaliation over the killing of a top general. Futures in London initially surged more than 5% as the Islamic Revolutionary Guard Corps claimed responsibility for the missile strikes in Iraq and held above $68 a barrel on concern of further escalation in the oil-rich region. Yet the gains had largely dissipated by the end of the morning, following a U.S. statement that no personnel had been killed and an early tweet by President Donald Trump that “all is well” following the attacks.  Click here to read more from Bloomberg.

How Much Oil Do We Import from the Middle East?

The Middle East presently produces about a third of the world’s oil.  Before covering how much oil we get from the Middle East today, let’s look at the picture prior to the shale oil boom.  According to the Energy Information Administration, the high point for U.S. oil imports from Persian Gulf countries was 2.8 million BPD in 2001. At the time, that accounted for 23% of all U.S. crude oil imports (11.9 million BPD).  Click here to read more from Forbes.

UAE Sees No Immediate Risk to Oil Flow Through Strait of Hormuz

The United Arab Emirates’ energy minister said on Wednesday he saw no immediate risk to oil passing through the vital gateway of the Strait of Hormuz after Iran attacked bases housing U.S. forces in Iraq.  “We will not see a war,” he added. “This is definitely an escalation between the United States, which is an ally, and Iran, which is a neighbor, and the last thing we want is more tension in the Middle East.”  Click here to read more from Reuters.

2020 Biodiesel Plant Map Reflections

Maintaining and updating a project such as Biodiesel Magazine’s U.S. & Canada Biodiesel Plant Map is no small feat.  Naturally, one recurring theme that kept rearing its ugly head was the toll that the lack of the $1 per gallon federal biodiesel tax credit, which expired at the end of 2017, and the U.S. EPA’s small refinery exemptions were having on the industry.  Click here to read more from Biodiesel Magazine.

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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