Israel May Delay Ground Attack in Gaza
October 24, 2023
Group ULSD basis was falling hard in yesterday’s cash market after it had rallied all the way to a $1.00 over futures. Yesterday cash basis fell over half of the dollar move higher to get into a much more balance and “normal” situation. Volatility has been high on both the cash basis and the NYMEX futures causing some crazy price swings in these markets. With all the uncertainty surrounding the Middle East situation the market continues to be on edge and react to any new developments and this will continue.
Today prices were selling off as there is currently more of an effort to try and work a diplomatic solution in the Israel and Hamas conflict. Some European leaders are calling for a humanitarian pause. The immediate threat to supplies has softened allowing some traders to lighten their positions. Traders will stay tuned in for any change to the current outlook.
Israel may have delayed their ground offensive in Gaza, but the air strikes continue. Israeli military said it had hit more than 400 targets in the last 24 hours.
The following is from Reuters. Euro zone business activity took a surprise turn for the worst this month as demand fell in a broad-based downturn across the region, a survey showed, suggesting the bloc may slip into recession. Some economists are saying Germany is already in recession.
Barclay’s is planning to cut costs after the banking giant’s trading division missed estimates in the third quarter. This news is raising concern again about the banking sector and could be a headwind for energy.