WS #17030
The Middle East conflict continues to exert severe pressure on global energy markets, with the IEA estimating a 60 bcm loss in LNG supply over the past eight months. The physical impact is evident in Europe, where France has drawn down 3.6 million barrels of strategic diesel reserves. This supply constraint reinforces the bearish outlook for energy-intensive sectors like airlines and shipping, while keeping energy equities supported by scarcity premiums.
Geopolitical Supply Shocks
The Middle East conflict continues to exert severe pressure on global energy markets, with the IEA estimating a 60 bcm loss in LNG supply over the past eight months. The physical impact is evident in Europe, where France has drawn down 3.6 million barrels of strategic diesel reserves. This supply constraint reinforces the bearish outlook for energy-intensive sectors like airlines and shipping, while keeping energy equities supported by scarcity premiums.