Commodities
Iran Tensions Spark Bullish Sentiment in US Oil Markets Amid Diesel Supply Crisis
The US oil price is trading near $92.49, down around 7% on the week, as tensions between Iran and the US escalate.
A recent post from The Kobeissi Letter reported that diesel supply from the Middle East and Russia has dropped by an estimated 1.1 million barrels per day combined since last year.
This comes as President Trump has rejected Iran's proposal for a seven-day ceasefire, with a potential bombing campaign after the November midterms adding to geopolitical risks for oil markets.
The diesel supply crisis and Iran war risk both push in the same bullish direction, through different channels, with the weekly RSI leaning mildly bullish despite WTI sitting inside a symmetrical triangle on the chart.