WS #15199
Brent crude has reclaimed the $100 level, supported by tight refined product markets and persistent geopolitical risks in the Middle East, including drone attacks on Russian refineries and US pressure on European diesel stockpiles. This supply-side inflation poses a direct threat to consumer spending and airline margins, while simultaneously boosting the profitability of integrated energy majors and refiners. The market is increasingly pricing in a structural supply deficit rather than a temporary demand shock.
Energy Supply Shock and Geopolitics
Brent crude has reclaimed the $100 level, supported by tight refined product markets and persistent geopolitical risks in the Middle East, including drone attacks on Russian refineries and US pressure on European diesel stockpiles. This supply-side inflation poses a direct threat to consumer spending and airline margins, while simultaneously boosting the profitability of integrated energy majors and refiners. The market is increasingly pricing in a structural supply deficit rather than a temporary demand shock.