With Oil's Vicissitudes, "This Time" Isn't Different

Worries over global oil supply are topping headlines anew, especially after last Friday’s drone attack on Saudi Arabia’s East-West pipeline collided with the news the Iran-backed Houthis had seized a firmer grip on the Bab-el-Mandeb Strait in the southern end of the Red Sea. Brent crude oil has accordingly extended its earlier rise to roughly $108 per barrel Tuesday, which some blame for 10-year Treasury yields hitting 5%. When oil market noise picks up, we think investors benefit from taking a breath, stepping back and reviewing the fundamentals—particularly on the supply front. While disruptions are real, they are also well known, widely watched and could easily prove fleeting, mitigating the threat to the global bull market.  Read Full Article »