Oil Narratives

On again, off again escalation

Oil Narratives - Geopolitics

The closure of the Strait of Hormuz continues to wreak havoc on oil markets, with every day without resupply costing volumes the global economy can ill afford to spare.

Pricing has nonetheless faced periodic selling pressure, driven by positioning and speculation over a resumption of flows.

With the Islamabad peace talks unresolved, continued supply losses are expected to add further premiums over the coming weeks and months.

On again, off again escalation

Oil Narratives - Geopolitics

The closure of the Strait of Hormuz continues to wreak havoc on oil markets, with every day without resupply costing volumes the global economy can ill afford to spare.

Pricing has nonetheless faced periodic selling pressure, driven by positioning and speculation over a resumption of flows.

With the Islamabad peace talks unresolved, continued supply losses are expected to add further premiums over the coming weeks and months.

Cross barrel, cross region dislocation

Oil Narratives - Dislocation

The closure of the Strait has had an outsized impact on some commodities, while others remain lagged.

Crude, naphtha, diesel, and jet have all generally outperformed gasoline blending components.

The Strait's closure has led to previously unseen trade flows and price levels for arbitrages, as seen in global East/West spreads.