Oil Falls as Traders Weigh Middle East Return, Supply Glut Risks

    Oil declined, with shipping traffic through the Strait of Hormuz picking up on hopes for a permanent US-Iran deal and a Wall Street bank issuing fresh warnings about a potential glut. Michelle Brouhard Head of Policy and Geopolitical Risk at Kpler joins Balance of Power to discuss.
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    22 Comments

    1. The US is gonna skip demand destruction and go straight to shortage and rationing at this rate. This "glut" is like opening a garden hose with the faucet off: the pressure will make the water in the hose shoot out briefly, but there's nothing coming after

    2. we have had a few dozen tankers LEAVE the Gulf. Their risk threshold is considerably higher than any shipping companies contemplating sending their fleets into the Gulf and potentially stranding them in another flare up. Trump is considering everything from going back to strikes to using nuclear weapons. Shipping companies know this – they are not sending their fleets back at all. Meanwhile we are drawing down on reserves around the world. We are heading for a major energy shock and complete disaster.

    3. The US has been selling off the SPR to keep the supply up on the world market in order to keep cost of a barrel down and help out countries in need of oil. The US has also been drawing down on the SPR for its own oil needs. The price of oil has been manipulated by a certain politician saying things like the war is going swimming well and Iran is begging for a deal and the war will be over soon and the price of oil will drop like a rock. I don't know exactly how low the SPR is because I have read several different levels. Trump has stated that the US will be out of oil in four weeks. Oil price shock when the US stops selling off the SPR on the world market.

    4. Supply glut? The same gaslighting as in Russia. I guess it's just speculators and usual summer demand. We will see who will be starving next year after farmers were unable to buy fuel

    5. The strait is not open and somebody has to pay for the tankers, crude and crews stuck for weeks. Democracy and low gas prices were pre trump things we enjoyed.

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