Perhaps the most over-hyped and misused phrase in the trading world is “paradigm shift,” yet the proliferation of U.S. energy production has created just that. And it will take the world’s energy producers and consumers a while to get used to it.
Hassan Rouhani, the first Iranian leader in a decade to visit Davos for the World Economic Forum, invited oil companies to invest in his country as a nuclear accord with world powers triggers the lifting of some sanctions.
The market now is worried about the pace of Fed tapering. The movement normally would be supportive of oil as more stimulus and a weaker dollar should support, yet a nuke deal with Iran is raising concerns of an over-supplied market.
A new month is upon us and there are some early signs that some things may be changing. Maybe the stock market won't go up forever? Yet for OPEC it is a new world with U.S. oil production eclipsing 8 million barrels per day.
The petroleum market will be obsessed with thawing relations and thawing turkeys. The ultra-low sulfur diesel led a comeback in energy in the aftermath of skepticism surrounding the surprise deal with Iran.