Oil commentary - 5 June 2017

Morning all. Brent closed down 0.68 on Friday to $49.95 and WTi closed at $47.66 down 0.70. Firstly, the events that occurred on London bridge and Borough Market on Saturday shock and appal me to my very core. I have enjoyed countless drinks with close friends and family in these places and what happened on Saturday is nothing short of barbaric. My thoughts are with everyone affected and my colleagues, friends and family in London. A very volatile day on Friday where we were down below $49 at one point before the market grabbed on to $50 per bbl with all its might. A fairly chaotic start to the week with several GCC countries and Egypt severing ties with Qatar. It will be interesting to see how this pans out but I think Qatar Airways should quickly get rid of their current slogan "Going places together" and replace with "Not going that many places very quickly". In terms of this affecting the crude oil market - I don't think it will have any immediate effect. It is highly unlikely we will see any International sanctions which would nigh on cease the vast majority of Qatari crude oil production. However LNG is a different story - if importers like Indian and Japan are put under pressure to curb doing business with Qatar then we could see the LNG market spike and spike hard. But I know as much about LNG as I do about sewing so don't go investing and blame me when it all goes wrong please. The most bullish factor I can see at the minute are muting’s that Venezuela could be sanctioned. If you take out Venz and Qatar production then it doesn't matter what driving season brings us, the market will rebalance itself straight away. Good day and week to all.