One of the reasons oil saw a historic sell off was the promise that Libya would soon be exporting oil. Can we count on Libyan oil? Oil prices reversed higher yesterday after a report that said that the UN was pulling its staff out of the country. Heavy fighting in Benghazi and Tripoli closed down the airport. Bottom line if Libya does not export oil as expected than we could see oil recovery back towards $104 basis WTI (CRUDE:CLN14).
On top of that the nuclear talks in Iran are not going so good. It seems that Iran's Supreme Leader Ayatollah Ali Khamenei does not want to give up his nuclear ambitions. In a speech he said that Iran needs to significantly increase its uranium enrichment capacity setting back all the so called progress in nuclear talks. That was after Iran had sent signals that it was willing to make some reductions in uranium enrichment. Secretary of State John Kerry says that there are still very real gaps in negotiations. It is not nice to cross the Supreme who ha.
Oil also may get some direction from the testimony of Janet Yellen today. Her views on the economy may move markets if she offers up any surprises. Already markets are slowing down as we await her testimony. Gold (COMEX:GCQ14) got hammered as a huge sell order came in at the wee hours of Monday morning raising talk of market manipulation. Others claim that it was the market anticipating a more hawkish Janet Yellen but this comes as the GLD gold ETF saw the biggest inflows sin saw the biggest inflows since 2011.
Hamas rejected the cease fire proposal put forth by Egypt to try to end the violence in Israel. It looks like the tensions will continue.
In the Ukraine a military cargo plane was shot down allegedly from a missile from Russian territory. The tensions continue but the gas still flows.