Analysts are concerned the U.S. faces severe supply-side constraints.
petroleum
But analysts note that lingering storm activity along the U.S. Gulf Coast could make for a bumpy ride.
Unusual conditions in crude oil markets are stopping prices from running too hot.
The rumor mill and potential impacts from Hurricane Ida led to substantial prices swings in intraday trading.
Markets appear to be focused more on the pandemic and U.S. economic policy than typical indicators of supply and demand.
Demand indicators from the commodities sector show the U.S. remains resilient, though it’s clear the pandemic is not yet over.
A small dip in implied demand was attributed to inclement weather.
Should U.S. oil prices run too hot, they will approach global prices and diminish incentives to export.
Iran remains something of an elephant in the room for the crude oil market.
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