• Asks about the impact of US assurances for ships in the Strait of Hormuz on energy markets, given the earlier 8% spike in crude.
    Romaine Bostick
  • Rebecca Babin
    Crude needed this headline to stabilize after panic trading. These are just words for now; need to see implementation. The market will sell off when ships start moving. Until then, a premium remains due to stranded oil building storage in the Middle East.
  • Asks about the storage capacity bugaboo, noting terminals are near capacity.
    Romaine Bostick
  • Rebecca Babin
    Iraq has the least storage and shut in first. UAE/Saudi have maybe 20-25 days of storage. Shut-ins are an extreme outcome. The key factor is figuring out regional storage capacity.
  • Asks about long-term alternative routes to bypass Hormuz.
    Romaine Bostick
  • Rebecca Babin
    Some pipeline capacity exists (e.g., Saudi's East-West pipeline with ~3mbd spare). These are huge investments taking time. The conversation on energy security needs reinvigorating.
  • Asks if fear is growing that energy infrastructure could be directly targeted as conflict continues.
    Romaine Bostick
  • Rebecca Babin
    Yes, that fear is growing. There have been instances: a UAE port hit by drone debris, an LNG facility in Qatar offline. Drones/strikes are spread out, raising concern about proactive shutdowns for personnel safety. Reducing missile/drone launches is key to stabilizing the market and removing risk premium.
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