WS #15957
Geopolitical supply risks are intensifying as Ukraine resumes drone strikes on Russian oil refineries, supported by explicit EU backing. This physical supply threat is keeping Brent crude elevated near $106, offsetting the bearish signal from a massive 9 million barrel draw in US crude inventories reported by the EIA. The market is pricing in persistent geopolitical risk premiums in energy, benefiting upstream producers while threatening downstream margins and inflation expectations.
Energy Supply Shock
Geopolitical supply risks are intensifying as Ukraine resumes drone strikes on Russian oil refineries, supported by explicit EU backing. This physical supply threat is keeping Brent crude elevated near $106, offsetting the bearish signal from a massive 9 million barrel draw in US crude inventories reported by the EIA. The market is pricing in persistent geopolitical risk premiums in energy, benefiting upstream producers while threatening downstream margins and inflation expectations.