Dear Fellow Trader:
I love the internet.
A few weeks ago, everyone was an expert on U.S. Trade Policy.
Then they became experts on Greenland.
Now, everyone has an opinion on Iran and the Strait of Hormuz.
Yes, Iran's navy could disrupt that narrow passage through which about 20% of all oil flows. The nation’s parliament voted to shut down the passage, which is essential to moving crude out of places like Iraq and Kuwait.
Now… all the hot takes are starting.
People are firing up Wikipedia. The same experts on Greenland who couldn’t find Greenland on a map… are now dusting off their maps to try to find that key waterway.
Have you seen it before?
Let me show you a picture.
There it is… Here is the Strait of Hormuz…
That’s a narrow space to get all that oil through, isn’t it?
But here’s the thing…
That’s not the Straight of Hormuz…
That’s the mouth of the Red Sea… south of Saudi Arabia.
Here’s the Strait of Hormuz…
Or is it?
No.
That’s the Strait of Gibraltar, south of Spain.
THIS IS THE STRAIT OF HORMUZ… north of Saudi Arabia.
No. That’s honestly it.
Now you, too, are an expert on global oil shipping lanes… just as much as the rest of the content farmers on Twitter and LinkedIn.
We’re Live Tomorrow
Instead of trying to figure out where this place is on a map…
How about I walk you through the trade?
All signs point to upside in the E&P side of oil, continued short covering in the oil markets, and weakness in consumer cyclical and Chinese stocks…
Why?
I’ll see you in the morning.
Stay positive,
Garrett Baldwin