Trade Energy Now?
Waiting for the geopolitical dust to settle.
This week, we learned that the Israelis did in fact bomb a Syrian nuclear reactor last year and the United States in now claiming that the North Koreans were assisting the Syrians in their efforts. Today, the Chairman of the Joint Chiefs of Staff accused the Iranians of increasing their efforts to train and arm insurgents in Iraq and Afghanistan.
Folks, the saber rattling is getting louder and its no wonder that crude is back to all-time highs. I'm not sure what the agenda is, but it does appear that the Bush administration is trying to 1) force a confrontation or 2) get everyone to the negotiating table. This feels like high-stakes poker to me.
The crude oil market has shown how sensitive it is to every little supply disruption. There simply isn't enough product to go around and demand has shown no sign of abating.
So how do you play the energy markets? I'm not sure you do. Sometimes it's better to be on the sidelines. Right now may be one of those times.
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