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Trump, Bolton, and Pompeo Pushed Oil Higher
With the appointment of Bolton and Pompeo to positions of security leadership, markets expect the Iran Nuclear Deal is all but dead. If the deal fails, the U.S. (and possibly our allies) would re-impose sanctions on Iran, possibly including oil. Iran produces almost 4 million barrels per day; if even one million of that were taken off the market, prices could skyrocket. The question is, would OPEC allow it? Click Here to reads more from Forbes.
Crude Stranded in Canada
Canada’s crude oil production generally comes from landlocked areas – meaning it has to travel by pipeline or rail to be exported. With pipeline constraints limiting crude shipments, the alternative over the past could years has been increased rail shipments. But shortages of locomotives to transport crude have left crude stranded in Canada, rather than being shipped to the U.S. The shortage has caused Canadian crude prices to plummet, while forcing U.S. exporters to rely on inventories rather than Canadian product. The result has been higher U.S. fuel prices, as well as strong demand to pull from crude inventories. Click Here to find out from Bloomberg how markets are resolving the concern.
Nine Traits of High-Performing Trucking Companies
First, this article has nothing to do with fuel, though the principles could apply to fuel as well as anything. Second, whether your fleet is made up for trucks, waste haulers, construction equipment, or vans, this article is worth a read. All nine of these principles, if applied, can help your business. Click Here to read the 9 traits from Fleet Owner.
Almost All Funds Expect Oil to Rise
Markets increased their net length in oil last week, thanks to Trump’s appointment of a new national security adviser. The increase in long interest grew at its fastest rate since October. When everyone expects markets to rise, it creates illiquidity for markets, since no one wants to sell their oil contracts to new buyers. This illiquidity could lead to a price reversal, or could herald a new, higher trading band for oil prices. Click Here to read more from Reuters.