All articles tagged with #supply disruption
Oil rose for a fifth straight session on fears of Iranian supply disruptions amid U.S.-Iran tensions, with Brent around $66.40 a barrel and WTI near $62. Tehran warned it could strike U.S. bases if Washington attacked, while U.S. stock builds and resumed Venezuelan exports capped some gains.
Copper prices have reached a new high due to concerns over potential supply disruptions, highlighting ongoing volatility in the commodity market.
Oil prices remained stable as market concerns about geopolitical tensions, including attacks on Russian vessels and potential US sales of seized Venezuelan crude, balanced against bearish supply fundamentals and high storage levels, with analysts predicting a well-supplied market in the near term.
The article details a 12-day period of extreme volatility in the oil market, driven by geopolitical tensions involving Iran, the US, and Middle Eastern conflicts. Traders closely monitored real-time intelligence and social media, with market reactions echoing the 1991 Gulf War, but today’s resilient market focused on actual supply flows rather than fears of disruption, leading to rapid price surges and declines. Options trading surged as traders sought insurance against spikes, while physical trading slowed, highlighting the complex dynamics of modern oil trading amid geopolitical risks.
European jet fuel and diesel prices have surged to 15-month highs due to fears of supply disruptions from the Middle East amid escalating conflict between Iran and Israel, with concerns about potential impacts on exports from the Gulf, which supplies a significant portion of Europe's fuel needs.
Global Brent crude oil prices have risen by about 20% in June due to escalating tensions between Israel and Iran, raising concerns about potential supply disruptions and their impact on inflation and economic growth. While the rise has been gradual, the risk of disruptions, especially through key shipping routes like the Hormuz Strait, could push prices above $100, affecting global markets, currencies, and economies, particularly in oil-importing countries. Stock markets remain relatively stable, with energy and defense stocks outperforming, but concerns about inflation and economic growth persist.
United Natural Foods, the distributor for Whole Foods, experienced a cyberattack leading to system shutdowns and empty shelves at stores nationwide. The company is investigating the incident with forensic experts and law enforcement, but few details are available. The disruption is expected to last several days, raising concerns about food supply security.
Oil prices started the week lower as Israel's pause in bombing southern Gaza reduced supply disruption risk, while a statement from the Iranian foreign minister hinted at a potential diplomatic solution. Additionally, Plains All American Pipeline projected record oil production from the Permian, and Goldman Sachs forecasted increased electric vehicle expansion in China, dampening oil demand. The Fed's indication of no immediate rate cuts also contributed to keeping oil prices range-bound, while Houthi attacks on ships in the Red Sea continued to impact oil traffic, rerouting it from the Middle East to Africa and potentially boosting demand.
Oil prices fell as traders focused on demand concerns, with news of potential low gasoline demand in the US and Chinese refiners requesting lower volumes of Saudi crude. While concerns about a supply disruption in the Middle East have diminished, the Gaza war still poses a risk. Fresh economic data from China, including declining consumer prices, added to the bearish sentiment. However, some analysts believe the sell-off in oil is exaggerated, as fundamentals remain tight in the short term.
Analysts predict that weakening global economic growth will likely keep oil prices below $90 per barrel this year and next, unless the Hamas-Israel conflict escalates into a regional war, which could threaten oil supply and push prices above $100, potentially testing $115 per barrel. The average forecast for Brent Crude prices this year is $84.80 per barrel, with a slight increase to $86.62 per barrel next year. While slowing economic growth is seen as the main bearish factor for oil, the situation in the Middle East could be a significant driver of price surges if a supply disruption occurs. However, most experts do not expect prices to remain in the triple digits for long due to downward pressure from economic slowdown.
Clorox is experiencing a disruption in its operations due to a cyberattack, resulting in a shortage of some of its products. The company detected unauthorized activity in its IT systems in August and took immediate action to contain the attack. However, manufacturing operations have not fully resumed, and Clorox is currently fulfilling orders manually. The cyberattack is expected to have a material impact on the company's current-quarter financial results, although the longer-term effects are still uncertain. Clorox shares fell about 2% in early trading.
European gas prices have surged by almost 40% due to fears of supply disruptions, leading to concerns of an energy crisis in the region. The price jump reflects worries over potential disruptions in the gas market, including reduced supplies from Russia and low storage levels.