Fear is the most-powerful emotion and war is one of the greatest fears.
When that kind of emotion grips a market, it’s tough not to get swept up in it but nearly-invariably, the futures is better than feared. So it was with the war drums beating earlier today and driving WTI crude oil to $87.67.
Late in the day, as Hezbollah launched a token response, oil gave much of it back, falling to $85.91. There is still a decent geopolitical premium given that the weekend looms but it’s not hard to imagine selling at the Monday open.
WTI crude oil intraday