WS #16683
Brent crude is trading near $118 with Strait of Hormuz flows constrained to 56% of normal capacity, a level that keeps oil prices elevated and supports energy equities. ADNOC’s warning that global supply buffers have eroded reinforces the scarcity narrative, while Kuwait’s output increase is viewed as a baseline restoration rather than a surplus expansion. This environment creates a clear divergence: energy producers and refiners benefit from high margins, while airlines and logistics face rising fuel costs.
Oil Supply Shock & Geopolitics
Brent crude is trading near $118 with Strait of Hormuz flows constrained to 56% of normal capacity, a level that keeps oil prices elevated and supports energy equities. ADNOC’s warning that global supply buffers have eroded reinforces the scarcity narrative, while Kuwait’s output increase is viewed as a baseline restoration rather than a surplus expansion. This environment creates a clear divergence: energy producers and refiners benefit from high margins, while airlines and logistics face rising fuel costs.