Like so many Garfields, the global oil market is dealing with a real case of 'The Mondays"...
Benchmark Brent crude briefly surged almost 20% in early trading before settling to 10% higher, up $6 to $66.28 per barrel, according to The Associated Press. The U.S. benchmark West Texas crude was up 9%.
The increase, which follows drone attacks on Saudi Arabia's Abqaiq oil processing plant and Khurais oil field, marks the single-largest daily surge in crude prices in years.
The loss of the 5.7 million barrels of Saudi crude production represents the largest such disruption on record, according to figures from the Paris-based International Energy Agency.
The Saudis will take weeks to get production ramped back up, meaning that one of the world's most important commodity markets will be in real flux, creating more uncertainty as the Trump administration still tilts towards its Chinese windmill and the bond market shits its pants. Not to mention that everyone is pretty much assuming that Iran is very much involved in these strikes, we have something of a burgeoning geopolitical crisis on our hands.
Now, our president is not one to let the markets feel spooked, so what is the play to keep everyone calm? Why put Rick Perry on CNBC of course...
U.S. Secretary of Energy Rick Perry said a coalition of countries is needed to address Iran’s “malign activity.”
“It is a time for a coalition of tame and thoughtful energy-producing and energy-consuming countries to come together and put a stop to Iran’s malign activity,” Perry told CNBC’s “Squawk on the Street” on Monday.
That's right, the current Energy Secretary, and former 12th place finisher on "Dancing with the Stars," is all over this, you guys. So just keep trading equities like the most stabilizing forces in the oil market aren't literally burning right now in a kingdom run by a man who has spent the majority of his waking hours trying to provoke the west into open conflict with Iran...
We are setting our watch and predicting that it takes about 36 hours for Trump to blame this whole thing on Jay Powell.