A dramatic U.S. drone strike kills Iran’s most important general. Tehran vows retribution and oil prices jump almost 5% as traders rush to cover the risk of a Middle East war. Then the selling starts.
It’s a trading pattern that would have been unthinkable a decade ago, but has become increasingly familiar. The threat of conflict loomed over the heart of the global oil market this past week, but the usual panic buying by traders and consumers was met quickly by a wave of U.S. shale drillers grasping the opportunity to lock in prices for future production.