Market Eases Off Recent Highs
January 7th, 2020
The market continues to ease back off the recent highs as it appears that traders are taking profits as the market continues to watch the news for updates related to potential retaliation from Iran. The speculations and opinions are all across the board on what might happen an until something does happen the markets will be on alert and likely congested.
Iran has vowed that they will respond with a historic nightmare on the US and said they are evaluating 13 potential ways of retaliation.
OPEC+ said late in the day yesterday that the cartel is prepared to respond to any supply emergency if needed by reversing its production cuts.
The idea of sanction on Iraq could have some impact ultimately on crude oil production. Iraq is currently producing about 2 million barrel per day and if sanctions impact that production if would offer price support. Iraq is a major supplier to Asia.
Iran said that they will no longer abide by the nuclear deal it is under with five world powers. The European Commission President, Ursula von der Leyen, said Iran must comply with the 2015 nuclear deal. She said the European Union is deeply concerned by Iran’s announcement that it will not respect the limit set by the Joint Comprehensive Plan of Action any longer.
The UN IAEA acknowledged Iran’s latest announcement on walking away from its nuclear containment deal with major powers and said it would report any developments promptly to its members states.
Moody’s said the US attacks in Iraq significantly escalate regional geopolitical risk. It said on the killing of Iran’s Soleimani, any protracted conflict will potentially have global repercussion, through effect on oil prices.