Horrid scenes and continued unrest in the Middle East with major oil producing nations perhaps getting involved. What are the probable implications for oil, and how about natural gas given the winter ahead and Europe’s dependence?

Take aways: 

• Things are setting up for explosiveness in European gas markets
• MBS plays a key role with regards to the direction of oil

Before we dig in to our analysis, we would like to turn the reader’s attention to our energy cable from last week, where we questioned the drop in implied gasoline demand in the US and provocatively asked ourselves what the New Yorkers were using as fuel if not gasoline. Well, it turns out that they were using fuel after all… 

Chart 1: Turns out New Yorkers were using fuel after all