WS #16135
Brent Crude has surged past $110 per barrel, driven by Houthi attacks on Saudi infrastructure and escalating threats to the Strait of Hormuz. This supply disruption is causing a sharp divergence in equity markets: energy majors like Chevron and ExxonMobil are hitting 52-week highs, while airlines and shipping companies face significant margin compression. The situation is exacerbated by US Strategic Petroleum Reserve levels falling to their lowest since 1982, raising the specter of emergency IEA interventions.
Oil Supply Shock and Geopolitics
Brent Crude has surged past $110 per barrel, driven by Houthi attacks on Saudi infrastructure and escalating threats to the Strait of Hormuz. This supply disruption is causing a sharp divergence in equity markets: energy majors like Chevron and ExxonMobil are hitting 52-week highs, while airlines and shipping companies face significant margin compression. The situation is exacerbated by US Strategic Petroleum Reserve levels falling to their lowest since 1982, raising the specter of emergency IEA interventions.