"Even if oil pulls back to $80, I suspect that markets aren't going back to the conditions seen when crude traded at $60 earlier this year. A structural reset has taken place, and it's being driven by deliberate major global political strategy on several fronts, not just supply disruption."
"Moving forward, the Strait of Hormuz can no longer be treated as a neutral passage. Around 20% of the world's oil and a significant share of LNG flows pass through it. Interference at that scale forces a complete repricing of risk across energy markets."
"Oil is now part of the negotiating toolkit, which changes everything. Prices are no longer reacting only to events, they're reflecting intent. This introduces a persistent premium in the market."
Brent crude oil prices have surged beyond $120 a barrel due to geopolitical tensions, particularly following a US-led blockade of the Strait of Hormuz. Nigel Green of deVere Group predicts that even if prices drop to $80, the market conditions will not revert to those seen earlier this year. A structural reset is occurring, driven by global political strategies and supply disruptions. The Strait of Hormuz is now viewed as a high-risk area, significantly affecting global oil pricing and shipping costs.
Read at London Business News | Londonlovesbusiness.com
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