The Guardian
Body representing European airports reportedly warning of “systemic” shortages if strait of Hormuz is not reopened; petrol demonstrations in Ireland now in their fourth day The global oil price may have remained below $100 a barrel this week following the two-week ceasefire agreed in the Middle East - but physical deliveries of regional crude have changed hands at much higher prices in a sign of the ongoing strain on the world’s energy supplies. The price used to value oil deliveries from the North Sea, known as the Forties blend, reached highs not recorded since 2008 at almost $147 a barrel on Thursday as global refineries were forced to vie for fresh cargoes, according to LSEG data. Global stock markets look set to end a volatile week on a more positive footing, with investor sentiment showing tentative signs of recovery heading into the weekend. The FTSE 100 opened broadly flat this morning, with US markets expected to follow suit later this afternoon. While the term ‘ceasefire’ is used somewhat loosely, there has been enough perceived de-escalation in the Middle East to ease some of the pressure on risk assets we saw earlier in the week. The prospect of in-person talks between the US and Iran over the weekend is also helping steady nerves, offering hope that diplomatic channels remain open. Taken together, investors are becoming more comfortable that, while risks remain, the broader trajectory is moving in the right direction. …Although it has not acted as the store of wealth or shock absorber that many might have expected during the recent Middle East tensions. That is largely because interest rate expectations have been the bigger driver of price action, outweighing the typical risk-off demand. This week’s tentative ceasefire, coupled with news of talks over the weekend, has shifted rate expectations into a more favourable position for gold, helping support the latest move higher.” Continue reading...
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