Energy Markets Are Higher on Fears of Iranian Retaliation Against Israel
April 12, 2024
The energy markets did selloff in yesterday’s trading with HO down roughly 0.04, gasoline down .01, and crude oil down 1.10. Prices were correcting and the bulls need to get to work here soon to save the potential for more upside. The market needed a correction, and they are getting one, but prices need to hold key support. Those level have been tested so the bulls will need these markets to trade higher soon to attract more buyers. Those buyers may need more bullish news out of the Middle East to spur that buying.
Congestion and consolidation look to be where the market is currently. There are a ton of stories and uncertainty around these energy markets, so prices are likely to congest waiting to get some development or clarity in the Middle East, with demand and or the economy.
OPEC reported that oil demand growth would be 2.25 million bpd for 2024 and 1.85 million bpd for 2025, which was unchanged from last months’ s report.
There is not a lot of fresh market moving news this morning, but energy markets are higher on the concern that Iran is going to retaliate against Israel. Iran has said Israel attacked its embassy in Damascus and is compelled to make a similar strike against Israel. But Iran doesn’t want their actions to cause a war with the US. So, these concern in the already stirred up Middle East have the energy markets higher on these concerns as traders cover their positions for the weekend.