Oil tumbles as the market sees de-escalation in the Middle East

The oil market is now down $3 on the day and off more than $8 from the session high shortly after the weekly open.

The market has quickly concluded a few things:

• The attack was choreographed, with a multitude of signs indicating where it would be aimed
• The attack was limited and Qatar confirms no injuries, which indicates they were intercepted
• Iran’s Supreme National Security Council said the number of missiles used matched the U.S. bombs dropped on Iran’s nuclear sites, which sounds like a token move
• Trump is more concerned about oil prices than attacking Iran further

Now all this leaves aside Israel and Iran lobbing missiles at each other but neither is capable of a ground war and energy has scarcely been targeted.

I can easily see crude dropping right back to $64 and oil companies are likely hedging aggressively today.

This article was written by Adam Button at www.forexlive.com.