Markets weigh risks in the Middle East
June 10, 2025
Crude and Refined product prices rose yesterday about 1% mainly on the drop in the US dollar index and the potential for a longer-term trad deal between the US and China after a meeting held in London. These talks spurred some optimism and helped support prices here in the near term. These markets are still stuck with no direction and react near term to headlines. The potential still exists for these markets to break hard in either direction.
The Canadian wildfires are still having an impact on oil sands production, limiting those barrels which is an impact to supply. On the other hand, the market still expects increased prodctuion out of OPEC+ to bring more barrels to the market.
According to the EIA’s latest Monthly Energy Review, a record amount of energy was produced in the US in 2024, up 1% from 2023.
The market does appear to be pricing in more risk premium all surrounding the situation with Israel. The US Iran talks have hit a few snags, and it doesn’t look like any quick fixes are in his deal which creates uncertainty.