Oil Action: Front-month WTI crude is up 0.9%
Oil Action: Front-month WTI crude is up 0.9% on the day, at $57.91, extending the rebound from the $57.20 low seen yesterday in the wake that the hawkish U.S. national security advisor, John Bolton, had got the chop from President Trump's administration. Given Bolton's long history as an advocate of regime change in Iran and who, as an article in the Washington Post says, sees negotiation as a weakness rather than a tool, it is no surprise that oil prices took a turn lower. This logic is that Trump is wanting to engage with Tehran (a la North Korea and the Taliban). Caution advised, however, as Trump's Secretary of State Pompeo is also hawkish on Tehran, and the President is likely to still favour his "maximum pressure campaign" against Iran, which include sanctions on Iran's oil exports, as a stick in any dialogue with the Iran's regime. Aside from the Bolton development, oil prices have been rising over the last week concomitantly with rebounding global stock markets on the expectation of fiscal stimulus in Europe and China, which has offset a scaling back in monetary policy easing expectations from the Fed and ECB, and with the U.S. and China having set up a return to the trade negotiating table in early October. WTI benchmark crude prices are up nearly 10% form the $52.84 low seen on September 3. Prices are up 5.3% from month-ago levels, and are up 27.4% on the year-to-date.