Iran’s Revolutionary Guard says it put a stop to the protests in Iran, yet the oil traders are not that convinced. After many arrests and more than 20 dead, the Iranian people are tired of being left out of the global economic surge. At the same time, the global economic surge is draining U.S. and global oil reserves at a record pace.
It was an active night for global markets, including a terror attack in Iran, the takeover of Banco Popular in Spain--not to mention the American Petroleum Institute Report that showed a big drop in crude supply but big increases in gasoline and distillates.
China telecom equipment maker ZTE Corp has agreed to pay more than $800 million to settle with U.S. authorities over allegations it violated U.S. laws restricting the sale of American-made technology to Iran, according to a person familiar with the matter.
I told you a week ago the markets were at the 618 day window from the May 2015 high in the SPX and it was also the 360 day high from the August 2015 low for whoever bottomed there which also turned out to be the NDX and Dow. If markets were in a sour mood, people seemed to be upset about a rumor circulating the tax cut wouldn’t come until 2018. Markets do not respond to travel bans even if I suspend the socionomic discussion for a minute.
Even as the U.S. oil rig count rose by 17 to 583 rigs this week and is the highest since October 2015, the big money knows it will take time for U.S. producers to erase the cuts that OPEC and non-OPEC players like Russia have already made. Rigs in the Permian basin are hot but in other formations we may have to see a higher price for oil to reignite the investment appetite.