While the market is initially celebrating a historic deal with Iran there may be other geo-political risk factors and doubts that may subdue the celebration. Oil traders are giddy because they believe this will open the door to more Iranian oil.
Mixed messages sent oil products higher, but oil continues to be grounded by an ever growing U.S. supply. While crude supply only increased by 40,000 barrels, overall supply at Cushing Oklahoma increased to a whopping 39.9 million barrels.
The November Brent/WTI spread has continued to narrow declining for the last two sessions in a row. As the supply issues that I have been discussing for weeks start to resolve themselves the spread will resume its path toward parity.
Global petroleum markets continue to price in the odds of war and peace. Tough negotiations between the U.S. and Russia continue in Geneva as they seek a way to avoid war and to rid Syria of those nasty chemical weapons.