Brent: War-driven supply shock supports prices – Commerzbank
|Commerzbank’s Dr. Henry Hao and Moses Lim highlight that Brent crude Oil remains supported as Middle East conflict disrupts regional energy infrastructure and constrains OPEC+ supply. They note Brent around $110 after recent attacks and Hormuz closures that the IEA calls the biggest supply disruption in market history. OPEC+ warns damage will prolong supply tightness even after hostilities end.
Conflict keeps Brent market tight
"OPEC+ members raised their production quotas for May as the war constrains production and shipments from several of the alliance’s largest members."
"Despite this, oil prices reflect massive disruptions."
"OPEC+ warned that damage to Middle East energy infrastructure will have a prolonged impact on supply even after the conflict ends."
"The continued Middle-East hostilities have left oil prices only slightly below the $120 hit last month as key energy assets were attacked and the closure of Hormuz created what the International Energy Agency called the biggest supply disruption in the history of the market."
"Brent crude oil climbed 1% to $110 a barrel as trading started on Monday."
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