Energy OverView July 1, 2014

Oil prices are slightly higher this morning in reaction to decent economic rather than geopolitical concerns for once. Not that there are not fresh geopolitical considerations. Israel is in the process of bombing Hamas territory, in retaliation for the killing of the 3 teenagers in the West Bank. In addition, Ukraine has ended its unilateral cease fire, and is expected to make a move on the separatists soon. That is likely to reignite the row with Russia, putting Russian natural gas, oil, and refined product supplies in the balance.