Trump Blockade Sends Oil Soaring

Overnight President Trump announced a blockade against sanctioned oil tankers from entering or leaving Venezuela, significantly ramping up political and supply risks in the oil market. Trump is scheduled to speak to the nation at 9:00 pm EST this evening.

This news has sent oil climbing today with US and Brent Crude both up 1.8%. Commodities in general are climbing today, with Natural Gas up 3.1% and Copper up 1.4%. There also appears to be a flight to safety today with Gold up 0.9%, Silver up 4.5%, Platinum up 3.6% and Bitcoin flat. The US Dollar is up today as well, sending the Loonie and Euro down 0.1%.

UK consumer prices came in better than expected today (3.2% vs Street 3.5%), adding to the case for a Bank of England interest rate cut when the MPC meets on Thursday. The Pound is down 0.5% on the news, while the FTSE is up 1.6%.

US index futures are trying to bounce back from a mixed Tuesday session. The three main contracts are up 0.2%-0.3% this morning.

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