Oil: Supply risk focus and strategic reserves – Danske Bank
|Danske Research Team notes that recent Middle East tensions have kept Oil in focus. The bank highlights that markets still mainly view the Iran conflict through energy supply risk, especially potential disruptions through the Strait of Hormuz, and flags possible US strategic reserve sales if Oil price pressures persist.
Energy markets weigh Hormuz disruption risk
"In energy markets, energy prices stabilised despite escalating Middle East tensions, as the conflict widened beyond the Gulf after a US submarine sank an Iranian warship off Sri Lanka and NATO intercepted a missile headed for Turkey."
"Weekly US oil inventory data showed no purchases for strategic reserves last week, though the US may consider selling reserves if oil price pressures persist."
"Given the magnitude of the geopolitical shock originating from Iran, the relatively contained reaction across risk assets reflects that markets continue to frame the conflict primarily through the lens of energy supply risk, specifically the potential disruption of oil and gas flows through the Strait of Hormuz."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.