Oil: Supply shock revives stagflation worries – OCBC
OCBC strategists Sim Moh Siong and Christopher Wong highlight that Brent is nearing USD100 as flows through the Strait of Hormuz are unlikely to resume early, pushing markets into an Oil–stagflation channel. They warn that another month of outages could drive inventories toward operational lows, forcing demand destruction and magnifying both inflationary and growth headwinds even as signs of softer demand emerge.
Brent surge threatens growth and inflation
"Oil climbed on renewed geopolitical uncertainty, steering markets into the oil-stagflation channel."
"Crude surged, with Brent nearing USD100/bbl, as an early resumption of flows through the Strait of Hormuz looks increasingly unlikely."
"Another month of outages could push crude inventories close to operational lows, leaving demand destruction as the main rebalancing mechanism."
"This would magnify both inflationary and growth headwinds."
"Despite the supply shock, demand is already softening: flight cancellations are rising, refinery utilisation is falling, and the EU is exploring measures to optimise jet fuel use."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.
Recommended Articles
