Energy Report: Completing The Process

Oil prices broke out of their month-long trading range to the upside as we expected it would and now it has to complete the process. It is becoming apparent that global demand is on the rise as OPEC and U.S. production has been restrained. The upside trend should complete the process and resume a test of the $70.00 a barrel area in the coming weeks. It helps that China is completing its process by processing a whopping 14.14 million barrels of oil a day in March, almost 20% more than a year earlier. This came as their GDP hit 18.3%.

Pump Jack, Oilfield, Oil, Fuel, Industry, Petroleum

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We were bullish before bullish was cool in oil and products and we hope that users took our advice and got hedged for the upside move. The risks for oil are still decidedly on the upside.

Joe Biden's foreign policy seems to be making the world less stable. Biden is calling on Vladimir Putin to lower tension with the U.S. after calling the Russian President a killer. As Joe Biden said, “words matter” when you are President. The Biden administration then put several sanctions on that named 32 Russian individuals and entities for their roles in attempting to influence the 2020 U.S. presidential election. Biden is sending the wrong message.

Biden’s embracing of Iran and trying to get them to rejoin the 2015 nuclear accord will not stop Iran from getting a nuclear weapon. The Wall Street Journal reports that “Iranian officials have said they want all the Trump-era sanctions removed before it returns to comply with the nuclear deal. “Anything imposed by the Trump administration should be lifted,” before Iran makes any concessions, Iranian chief nuclear negotiator Abbas Araghchi said in an interview last week. The Biden administration has said it is willing to lift all sanctions that are “inconsistent” with the nuclear deal but hasn’t identified those it will leave in place. Biden administration officials have said that they intend to retain some sanctions imposed on human rights, ballistic missile, and terrorism grounds and may impose new ones. They say that the 2015 deal doesn’t preclude such actions according to the Journal. They meet today so stay tuned.

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