Perspective with Andrew Dickens: High oil prices are back, baby

Oil prices. Oil prices are back, baby.

At the moment, West Texas crude is sitting near US$74 a barrel, while Brent crude is around US$79. Prices are up slightly, rebounding as tension continues between the United States and Iran.

Looking at the oil trading charts, West Texas crude has fallen to almost its lowest point in quite some time.

But if you look at the futures markets, the expectation is that prices will rise. Some analysts say that could very well happen when US markets open tomorrow - Monday in the United States, which is Tuesday for us.

So, where are we with oil prices?

Geopolitically, the ceasefire signed on June 17 has effectively collapsed. The United States has struck more than 170 Iranian military targets across Tehran and key locations in the south. Iran has retaliated with missile and drone strikes on US bases in Bahrain, Kuwait and Qatar, causing casualties across multiple areas.

Donald Trump has warned that 1,000 missiles are "locked and loaded", while US intelligence, backed by Israel, says Iran has developed fresh plots to assassinate Trump on US soil.

Trump says the Strait of Hormuz is open. Iran says it isn't.

Does that sound like peace to you?

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Episode Transcript

Speaker 1 (00:00):
Oil prices. Oil prices are back baby at the moment,
West Texas crews sitting near seventy four dollars brent around
seventy nine. It's a bit up, a bit of a
rebound because things keep on happening between the States in Iran. Now,
on the oil trading trend charts, West Texas oil has
now sunk to almost its lowest point for a while.

(00:20):
But if you look at the futures charts, that sees
the price going up, and some are saying that could
very well happen tomorrow when the US markets open. So
it's Monday their time, but Tuesday our time. So where
are we with the oil prices? We geopolitically the ceasefire
signed on the seventeenth of June that's effectively collapsed. The

(00:41):
United States has hit over one hundred and seventy Anian
military targets across Tehran and key southern points. Iran has
retaliated with missile and drone strikes on US bases in
Bahrain and Kuwait and Kuta, causing casualties across multiple provinces.
Donald Trump has worn that one thousand missiles are lockdown
loaded and US intelligence backed by Israel says. Iran has

(01:03):
devised fresh plots to assassinate Donald Trump on US soil.
Trump says her moves is open. Iran says it isn't.
Does it sound like peace to you? And a second
front is emerging. Cuba has acquired about three hundred attack
drones from Russia and Iran, and US intelligence has confirming
discussions have been had between the Russians and the Cubans

(01:26):
about striking Guantanamo Bay, US naval vessels and even Key West.
Does this sound like peace to you? But despite all
of this, the oil price remains suppressed compared to what
it was when it was high earlier in the year,
down from the ninety five dollars rent peak that was
early June, because markets are still pricing in a diplomatic resolution.

(01:48):
But does it sound like peace to you? If this
thread of hormus, which carries twenty percent of the global oil,
is disrupted again? Major banks see Brent oil at one
hundred to one hundred and twenty bucks nine. Deutsche Bank
is modeling two hundred dollars a barrel under a full blockade.
But the media has covered barely any of this, leaving

(02:11):
a real major gap in real time reporting. But here's
the thing. This is, this is what I'm saying. If
you look at oil traders and you look at the
screens they're watching, they are saying the technicals and the
geopolitics aligned for a major move upwards. We have to
wait for confirmation. It may happen tomorrow, so let's not
front run the open. But you have been warned there

(02:33):
are many signs that the globe's fuel crisis is still
in play. For more from Hither Duplessy Allen Drive, listen
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