Over the last month, many factors have affected the general markets and the energy markets. Among these are trade wars, immigration issues and worries about slower growth. They have put pressure on the markets and especially on the oil and gas market that is concerned about future demand and rising supplies. The energy sector has come down with the general market but has not recovered as well as the general market has.
We think that the trade issues will eventually be resolved, especially the most important trade issues with China. Other problems, such as the dispute with Iran might continue, as might the continued problems in Venezuela. In the long run, if the trade disputes with China reach some type of reasonable resolution, the markets will likely ignore other issues and begin to rise – oil markets included.