A Bigger Risk Than The U.S.-China Dispute (Podcast)

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Includes: BNO
by: SA For FAs
Summary

Investors need to keep an eye on the oil market, which has the potential to be even more disruptive than the U.S.-China trade dispute, Brexit or other geopolitical crises.

The 20-month high in oil inventories should be bearish for oil, but prices are rising because the market weighs tension between the U.S. and Iran more than the current glut.

While short-term investors should be eyeing Brent crude oil futures, in the long-term, a Middle East conflict could ratchet up the price consumers pay at the pump.

The 20-month high in oil inventories should be bearish for oil, but prices are rising (BNO) because the market weighs tension between the U.S. and Iran more than the current glut.

This brief podcast (4:44) argues that the c ontinuing strength of the global economy will depend on whether the Strait of Hormuz, an area of just 21 miles through which 30% of the world’s crude oil passes, remains secure.

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