The Strait of Hormuz is just one of many choke points being squeezed right now, says Jeff Currie
Speakers
Jeff Currie
— CSO Energy Pathways, Carlyle Group
Joe Kernen
— Co-Anchor, Squawk Box
Summary
Jeff Currie discusses the disconnect between crude oil prices and refined products like gasoline and diesel, emphasizing that refined products are the true drivers of inflation. He expresses a bullish view on the entire commodity complex, particularly agriculture, gold, silver, and grains, citing numerous global supply choke points.
- Refined products like gasoline and diesel are better indicators of energy inflation than crude oil.
- Global choke points, including the Strait of Hormuz and the Red Sea, are squeezing supply chains.
- China's reduction in product exports is contributing to higher global energy prices.
- Disruptions to Russian refineries and the Black Sea grain corridor are further constraining supplies.
- Currie is bullish on the broader commodity complex, doubling down on agriculture, gold, and silver.
Ideas
Favor refined products over crude oil exposure.
Focus on refined products like gasoline and diesel rather than crude oil, as refinery disruptions and export cuts are squeezing product supplies and driving inflation, making crude oil mere headline noise.
Favor refined products over crude oil exposure.
Focus on refined products like gasoline and diesel rather than crude oil, as refinery disruptions and export cuts are squeezing product supplies and driving inflation, making crude oil mere headline noise.
Bullish commodities due to global supply bottlenecks.
Bullish on the entire commodity complex, specifically doubling down on agriculture, gold, and silver, due to numerous global choke points and weather events squeezing supply.
Long grains due to Black Sea disruptions.
Double down on being long grains, particularly corn, because the Black Sea grain corridor has been taken out by the conflict in Ukraine, severely restricting supply.
