We now have more evidence that the oil supercycle is underway, crude prices are on the rise as global demand and underinvestment in new oil projects are starting to take their toll on global oil supply.
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.
The unrest in Iran may give the Trump administration the ammunition it needs to back out of the Iranian nuclear deal and slap new sanctions on Iran. President Trump views Iran as the number one state sponsor of terror and feels that the Iranian regime is one of the major causes of war and conflict in the region. Trump wants to take a hard stance against Iran and this could be his opening.
The U.S. dollar is the story for the first trading day of 2018 with as euro/dollar (EUR/USD) currency pair trades toward the key 1.2090-1.2100 levels. Across the major currencies the dollar is down against all of them, with Nok, Won and Sing dollar the best performers.