Ok, dammit. That didn’t take long.
Coming off its best week of the year…
… oil is already off to the races. And although it’s obviously too early to divine anything meaningful, you should note that WTI just hit $50 for the first time since May after rising as high as $50.06 right out of the gate.
A couple of hours ago, WSJ was out reporting that sanctions against Venezuela could come as soon as tomorrow. To wit:
U.S. government officials are considering stepping up sanctions against Venezuela by targeting its vital oil industry, although an embargo against Venezuelan crude oil imports into the U.S. is off the table for now, people familiar with the deliberations say.
The measures could be announced as early as Monday, the people say, after a vote Sunday pushed by embattled Venezuelan President Nicolás Maduro to elect a special assemblythat will rewrite the constitution. Venezuela’s opposition is boycotting the vote, fearing the assembly could dissolve the opposition-controlled congress or postpone elections.
It looks like folks are starting to price in that “geopolitical risk premium” we talked about at length on Thursday.
You’re also reminded that WTI breached its 200-day moving average on Friday.
“When prices trade through the 200-day moving average, usually you see funds jump in at that point,” Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York said. “$50 is a big number.”