Will Cunliffe
Research Analyst, The Officials
Let’s all take a breather
The market has taken a chill pill, sources tell us yet another ADNOC tender is taking place today.
The market has taken a chill pill, sources tell us yet another ADNOC tender is taking place today and no surprise as the IEA saw UAE's production explode plus Japan has finally found some relief!
And relax… Market sources commented on the dramatic drop in margin calls today, following a couple of days of chaos. The market seriously chilled out again, as the US and Iran seemingly stopped their boom boom because their retaliations had been “proportionate” to the other’s transgressions. It’s certainly spooked the shippers, as AIS signals from the Gulf have all but dried up. Currently, there are just a handful of ships within the Strait, including only one tanker. The risk for oil markets is that people don’t want to return to the market, having been stopped out this week, leading to a further deterioration of liquidity conditions. Who wants to take a position heading into the weekend?! Threats over complete closure of the Strait of Hormuz and Bab el-Mandeb in case of another whacking don’t reassure us.
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