We have to take note of oil and product price movements this week but all such developments this week come with a caution that trading volume is light in the period between Christmas and New Year's Day. However, the dynamics moving the market remain the same. Over the past few days the Iranians have threatened to close the Straits of Hormuz. The Iranians may use proxies such as Hezbollah and the Sadr Army to push their agenda and may kidnap sailors in single boats in the Persian Gulf or lost hikers along the Iraqi border but they have yet to openly attack the Sixth Fleet. Ten months from an American election, the Iranians may not want to overtly attack U.S. Naval vessels and challenge a beleaguered president Obama.
Also affecting prices was the drop in equities and the euro's recent climb.
Today, WTI-$1.98, $99.36; Brent-$1.71, $107.56; RBOB-3.75¢, $2.6513; HO-1.51¢, $2.8934.
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