The rule of thumb on geopolitical moves in oil is to fade the pops. Today’s rip on Yemen bombing is yet-another example. WTI crude oil traded as high as $75.28 but has slid all the way back to $73.05. It’s still up $1.09 on the day but it’s tough for ‘fear of war’ to sustain a bid until/unless the bombs actually start falling in a place the produces oil.
Obviously the risks of a conflict with Iran continue to ratchet up but we’re not at the point where it’s impacting supply/demand. Moreover, the US and UK bombing of Houthis might put an end to the Red Sea blockages.
WTI crude 15 mins