Market Musings 10/8/2024
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
Markets seesaw as energy prices whiplash.
So, what’s going on with oil?
Yesterday, markets fell on crude oil pricing sharply rising.
Then, the opposite today with markets higher as oil tumbles.
So what’s causing oil to whiplash?
Well, primarily the escalating #GlobalTension in the Middle East.
Last week, Iran launched missiles at Israel and, as expected, Israel has vowed to retaliate (though hasn’t yet).
The Middle East is very oil rich and #GlobalTension there can disrupt the global oil supply.
We’ve seen crude oil rise sharply since.
However, today, prices sharply reversed as China economic forecasts fell.
Investors have been banking on a big China stimulus plan to jumpstart their economy.
But, the plan came in a bit skimpy on details leading investors to question the actual impact.
Basically, lower economic demand → less shipping needed → less oil demand.
While Q3 earnings likely takes the spotlight near-term, oil likely remains a market headwind as long as the #GlobalTension continues despite today’s reprieve.
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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.
Original Photo by Pixabay.