Fuel oil rally expected to stall as market shakes off US-Iran policy
1. Fuel oil margins rose due to new Iran sanctions by President Trump. 2. Rally expected short-lived amid unclear supply disruptions and China demand concerns.
FAQ
Why Neutral?
The short-lived fuel oil margin increase indicates volatile market conditions, lacking sustained support similar to past sanctions on Iran which often led to temporary spikes.
How important is it?
While the policy change could impact fuel oil prices, broader economic factors limit its lasting effect on the S&P 500.
Why Short Term?
Due to uncertainty regarding supply disruptions and global demand, any impact on the S&P 500 is likely to be brief.