Victor Shum
Victor Shum
continues driven market morning price primarily upwards
This morning the price crept upwards so the market continues to be driven by the short-term geopolitical (pressures) primarily in Nigeria.
arabia call cut driver key output premium price promised provide risk since time
The geo-political risk premium and how it fluctuates is a key driver in the price of oil. Since the time Saudi Arabia objected to Iran's call to cut output and promised to provide more oil, the risk premium has declined.
crude drive events floor high market price pricing seeing short term though
Short term events like this which are unpredictable can drive a high price floor for crude prices. That is why we are seeing pricing in the high 50s even though the market is well supplied.
besides demand driven emotional iranian momentum prices supply
Besides the fundamental supply and demand information, prices are driven by the emotional momentum of the Iranian issue.
disruption keeping supply threat traders
The threat to supply disruption is keeping traders edgy.
concerns due price rise
A lot of the price rise is due to geopolitical concerns fuelling speculative interest.
disrupted drama iran nigeria oil prices sending short
The geopolitical drama over Iran and Nigeria is sending oil prices upwards. But Nigeria is more problematic in the short term, because it has actually disrupted supply.
capacity crude louisiana oil process shut sour
The crude oil that is going to be supplied is the heavy, sour kind, and there is not much refining capacity for that. Louisiana refineries can process that, but they are shut down.
few generally inventory market past report
In the past few weeks, right before the announcement of the inventory report the market generally comes down.
turn
If it's cold, you need to turn on the heating. It's not like gasoline, which you can conserve.
iranian market reacting regarding rhetoric
The market is reacting to some rhetoric regarding the Iranian situation.
friday gained kicking oil path people sold storm strength themselves toward
But then the storm reloaded over the weekend, gained strength and set on a path toward the oil facilities, ... The people who sold on Friday are probably kicking themselves now.
less portion power types
If you have a portion of your power requirement generated by nuclear, there is less of a need for other types of fuel.
louisiana process shut
Louisiana refineries can process that, but they are shut down.