StanChart Warns Oil Is Now Built for Sharper, More Frequent Spikes
Standard Chartered analysts warn that oil prices will remain volatile due to the ongoing US-Iran conflict and logistical bottlenecks in the Strait of Hormuz. The report suggests that middle distillates like diesel and jet fuel will continue to outperform gasoline as geopolitical tensions persist.
Why it matters
Persistent instability in oil-producing regions threatens global energy prices and economic recovery efforts.
Oil prices hit nearly $110 per barrel on Thursday for the first time since July, with no end in sight for the Middle East conflict. The IRGC announced on Wednesday that it had attacked and heavily damaged eight oil tankers and two U.S. Navy destroyers in the Strait of Hormuz, in retaliation after the U.S. military destroyed five IRGC-linked oil tankers in the Gulf of Oman on Tuesday night. CENTCOM has, however, denied the IRGC claims. Hopes for a quick resolution to the war have also faded after U.S. President Donald Trump said that the war is unlikely to end before the midterm elections in November, while advisors have allegedly warned him the war could last for the rest of his term. By Friday morning at 710 a.m. ET, Brent crude was trading at $103.58, while WTI was trading at just over $98.
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