Karen Young

"We are seeing at least what was 15 million barrels a day of crude and 4 million barrels of refined product, at least disruption in the 12 million barrels a day range in that cannot go through the East-West pipeline or the pipeline through the UAE." The effective closure of the Strait of Hormuz and the lack of viable pipeline alternatives removes a massive portion of global oil supply from the market. This structural deficit will keep crude prices elevated, directly benefiting oil commodities and broad energy sector equities outside the conflict zone. LONG. The physical bottleneck in the Middle East guarantees a supply premium on oil until the conflict is fully resolved and shipping lanes are secured. A sudden diplomatic breakthrough or ceasefire could rapidly reopen shipping lanes, causing oil prices to crash.

"We are seeing at least what was 15 million barrels a day of crude and 4 million barrels of refined product, at least disruption in the 12 million barrels a day range in that cannot go through the East-West pipeline or the pipeline through the UAE." The effective closure of the Strait of Hormuz and the lack of viable pipeline alternatives removes a massive portion of global oil supply from the market. This structural deficit will keep crude prices elevated, directly benefiting oil commodities and broad energy sector equities outside the conflict zone. LONG. The physical bottleneck in the Middle East guarantees a supply premium on oil until the conflict is fully resolved and shipping lanes are secured. A sudden diplomatic breakthrough or ceasefire could rapidly reopen shipping lanes, causing oil prices to crash.