"Markets are reacting to headlines about possible negotiations, but the physical oil market operates with a delay. What we're seeing now is a sentiment-driven move, not a true reflection of tightening supply."
"Shipping timelines are critical. Oil cargoes from the Gulf typically take between two and six weeks to reach key destinations, depending on the route. Tankers currently at sea were loaded before the latest escalation, so today's price movements are not yet capturing the disruption that could be forming."
"A delay of several days per shipment quickly compounds across the system. Fewer cargoes arrive on time, inventories begin to tighten, and the market adjusts only after those constraints become visible."
Oil prices have decreased amid hopes for US-Iran negotiations, but significant supply chain delays are causing real strain. Brent crude is trading below $100 a barrel, while US crude prices are falling more sharply. The CEO of deVere Group warns that current market movements are sentiment-driven and do not reflect actual supply tightening. Shipping timelines are critical, with oil cargoes taking weeks to reach destinations. The Strait of Hormuz is a key risk area, and delays in shipments can lead to tighter inventories and market adjustments.
Read at London Business News | Londonlovesbusiness.com
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