Reply to Gas is up

Forum Index » Political Discussion

Reply to "Gas is up"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote] The oil futures paper market is likely underestimating the massive supply disruption that a closed Strait of Hormuz is creating in physical crude and fuel supply globally.

Crude futures prices briefly spiked early this week to $119 per barrel, before retreating to the $90s and trading at $100 a barrel early on Friday in Asian trade.

However, the premium of physical Dubai crude has surged to $38 per barrel over its paper equivalent, according to data compiled by Reuters columnist Clyde Russell.

The wide gap between paper and physical prices suggests that supply is being immediately choked off.
…
With limited capacity available to bypass the crucial Strait of Hormuz and storage filling up, Gulf producers have slashed their combined oil output by at least 10 million barrels per day, the IEA said in its monthly Oil Market Report on Thursday.

In addition, over 3 million barrels per day of refining capacity in the Gulf region has already shut due to attacks and a lack of viable export outlets.
..
Early this week, analysts at Wood Mackenzie said that Brent Crude prices could surge to $150 per barrel in the coming weeks.

“However, supply volumes at risk this time are dimensionally bigger – and real,” unlike in the 2022 Russian invasion of Ukraine, when supply was free flowing and just had to redirect to China and India, according to WoodMac.

“In our view, US$200/bbl is not outside the realms of possibility in 2026,” the analysts said.[/quote]
https://oilprice.com/Energy/Crude-Oil/Futures-Market-Misreads-the-Hormuz-Oil-Shock.html[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics