WTI and Brent prices spiked overnight on the headlines about a US drone being shot down by Iran, and just legged higher once again following Trump’s tweet warning that “Iran made a very big mistake.”
“Geopolitics is helping oil bulls to make a spectacular come-back after a few days’ of directionless trading,” said Tamas Varga, an analyst at PVM Oil Associates Ltd. in London.
WTI now trades at its highest since May.
This is the biggest one-day jump since the first week of January.
Will this surge in oil prices mess up the goldilocks narrative of lowflation that The Fed is banking on?
via ZeroHedge News http://bit.ly/2WYDQQo Tyler Durden