Conventional Crude Oil
Weekly Update

Apr 11, 2024

Push Pull

Oil prices are being pushed higher and pulled lower at the same time.

The bullish push this week was directly from rising tensions between Israel and Iran. Israel killed several high-ranking Iranian Republican Guard leaders in Damascus, Syria. The Iranian leadership has vowed revenge. Israel and the U.S. have warned that they may hit back. The risks of a direct conflict between Iran and Israel, and even potentially the U.S. have risen. Tanker traffic in the Persian Gulf and through the Straits of Hormuz comes under risk if Iran does get directly involved. There is no doubt that would cause oil prices to move higher, and if actual supply disruptions began, oil prices could very well spike.

However, oil Sentiment also took a bearish hit this week when the EIA weekly oil report came out. The data was almost universally bearish. Key inventories all saw growth....