Ben Sharples argues oil and broader energy prices can move higher because Middle East escalation and Houthi attacks on Saudi energy infrastructure threaten supply, Chinese crude buying is returning, and Russia-Ukraine disruptions add to a confluence of supply risks; Brent and WTI are already back above $100, and prices could rise further if disruptions deepen.
Oil prices can move higher because Middle East escalation—US attacks on Iranian tankers, Houthi attacks on Saudi infrastructure, and Houthi gains toward the southern Red Sea—is threatening supply. Chinese buying is also tightening the global market, and attacks in the Strait of Hormuz could further disrupt flows. Brent has not yet reached April wartime highs above $126, but the speaker says there are good grounds for prices to rise from here.
Energy strength is broadening beyond crude: diesel and natural gas are also rising, and the Russia-Ukraine war adds to a confluence of supply shocks pushing energy prices higher. US gasoline was at a seasonal record over Labor Day, and the speaker concludes that energy is going higher, which makes inflation conversations difficult.
Energy strength is broadening beyond crude: diesel and natural gas are also rising, and the Russia-Ukraine war adds to a confluence of supply shocks pushing energy prices higher. US gasoline was at a seasonal record over Labor Day, and the speaker concludes that energy is going higher, which makes inflation conversations difficult.