Brent: Supply risks keep prices elevated – Danske Bank
Danske Bank’s Danske Research Team highlights a sharp move higher in Brent as escalating Middle East tensions threaten key supply routes. The report notes Brent’s jump above USD 107/bbl and warns that closure of Saudi Arabia’s East-West pipeline could endanger up to 4% of global Oil supply. The team expects markets to stay focused on disruption risks and the timeline for restoring flows.
Middle East disruptions drive Brent higher
"In commodities, Brent jumped around 3% at opening as escalating geopolitical tensions raised concerns over global supply."
"Brent moved above USD 107/bbl after new strikes on Saudi Arabia, attacks on vessels near the Strait of Hormuz and the shutdown of Saudi Arabia's East-West pipeline."
"The pipeline is a key export route that allows crude to bypass the Strait of Hormuz, and its closure could put up to 4% of global oil supply at risk."
"At the same time, rising risks regarding the Houthis around the Bab el-Mandeb Strait have added concerns over another important transit route."
"With a planned Gulf-Iran meeting in Oman postponed, markets are likely to remain focused on the risk of further disruption and whether the East-West pipeline can be brought back online quickly."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
