Oil Prices Shaken Not Stirred By Trade War Tensions! Will My Aston Martin Still Run?

Another Day Another Crisis

Right 007 reporting for duty. Seems the world's gone a bit pear shaped again hasn't it? Apparently these 'trade wars' are all the rage now. The Yanks and the Chinese are at it like cats in a sack slapping tariffs on each other like I slap down a winning hand at the casino. Consequence? Oil prices took a tumble faster than a Bond girl falling for my charm. U.S. crude dropped about 3% and global benchmark Brent joined the freefall. Makes a chap wonder if my Aston Martin will still be affordable to fuel next week.

China's Payback is a Beach

Beijing never one to back down from a staring contest announced some rather hefty tariffs on U.S. goods. 84%? Good heavens that's more than I typically tip the concierge! Apparently this is their way of saying 'thanks' for Trump's levies. The markets naturally threw a bit of a wobbly. Crude oil prices plummeted further than a Blofeld's lair hidden deep beneath a volcano. It's all rather dramatic isn't it? Almost makes one miss the days when the biggest worry was a megalomaniac with a penchant for piranhas.

Recession? I've Faced Worse at the Baccarat Table

The real fear of course is this 'trade war' leading to a recession. That's a fancy word for 'everyone gets poorer,' which is hardly conducive to a gentleman's lifestyle. The worry is that a global slowdown will dent demand for crude oil leading to even lower prices. As if that weren't enough OPEC+ has decided to pump out more oil like there's no tomorrow. It's a 'toxic cocktail,' as some commodity strategist lady told CNBC. Sounds about as pleasant as a martini mixed with motor oil.

OPEC's Oil Slick

OPEC+ seems intent on flooding the market with more oil despite the already looming surplus. Reminds me of Goldfinger's plan to irradiate Fort Knox – brilliant in its audacity but ultimately detrimental to everyone involved including themselves. One wonders if they've considered the impact on my travel budget. Flying first class to exotic locales isn't exactly cheap you know.

Iran's Nuclear Option (and Oil)

As if all this wasn't complicated enough the U.S. and Iran are scheduled to have a little tête à tête in Oman to discuss Iran's nuclear program. If those talks go swimmingly we could see even more Iranian oil sloshing around the market. More supply less demand... it's a recipe for financial disaster. Still a chap can always hope for a profitable outcome. After all 'the name's Bond James Bond,' and I've always had a knack for turning impossible situations to my advantage. Time will tell if this situation can be defused.

Shaken Not Stirred But Definitely Worried

So there you have it. The global oil market is in a bit of a state thanks to trade wars OPEC antics and potentially Iranian oil. It's enough to make a man reach for a stiff drink. But as M always says "We have no choice we have a job to do." And my job for now is to keep an eye on those oil prices and ensure my Aston Martin doesn't end up gathering dust in the garage. Cheers to that!