Daily Oil Fundamentals

Short-Term Hedge Against Escalation

11 Sep 2025

Short-Term Hedge Against Escalation

The support that geopolitical events provide to oil prices is finite. When tensions rise in oil-producing regions such as the Middle East or around Russia, the market’s gut reaction is to cover short positions and build up some length. These moves are driven by perceptions, specifically, the belief that not only financial but, more importantly, physical oil supply will be adversely affected.

Daily Oil Fundamentals

War is Back on the Menu

10 Sep 2025

War is Back on the Menu

In a testament to the professionalism of our market, and the growing global immunity to the ongoings of war that two invasions of sovereign territory are greeted with only a mild reaction in prices. This of course refers to the downing of Russian military hardware by Polish and NATO forces as weaponry transiting to Ukraine from Russia is shot down. The other more outrageous but also shrugged off airspace abuse is the targeting of Hamas leaders by Israel in the Qatar capital of Doha.

Daily Oil Fundamentals

Politics, Interest Rates and Occlusion

09 Sep 2025

Politics, Interest Rates and Occlusion

The fizz experienced at the opening part of yesterday in oil prices sadly, and in line with recent performances, fizzled out. While the increased OPEC barrels for the future were ignored, being deemed lowly in importance compared with aggressive language surrounding Russia from Donald Trump, once again a lack of substance to the chat and no further utterances brought the prospect of oversupply back in mind.