All articles tagged with #supply disruptions
Originally Published 13 days ago — by Crude Oil Prices Today | OilPrice.com
WTI crude oil prices rose by 2.5% to $58.17 amid escalating Yemen tensions and stalled Ukraine peace negotiations, with market concerns about supply disruptions due to ongoing conflicts. Despite recent gains, long-term forecasts are cautious due to rising global inventories and oversupply, leading analysts to lower future price expectations for 2026 and 2027.
Originally Published 4 months ago — by Reuters
Oil prices increased over 2% amid escalating Russia-Ukraine tensions and supply concerns, with market expectations that OPEC+ will maintain current output levels at an upcoming meeting, while Ukrainian drone attacks have reduced Russia's oil-processing capacity.
Originally Published 6 months ago — by Reuters
Oil prices increased as the Iran-Israel conflict entered its sixth day, raising concerns over potential supply disruptions in the Strait of Hormuz, a key oil route. The conflict has prompted military deployments and heightened geopolitical tensions, impacting global oil markets amid broader economic considerations including U.S. Federal Reserve interest rate discussions.
Originally Published 7 months ago — by Investopedia
Oil prices hit a two-month high above $68 per barrel driven by Middle East tensions and optimism from a US-China trade deal, amid concerns over supply disruptions and a positive economic outlook.
Originally Published 1 year ago — by Reuters
Oil prices fell in early Asian trade after Israel concluded strikes in southern Gaza, easing concerns about Middle East supply disruptions. Geopolitical risks and potential oil supply disruptions had pushed prices up by about 6% last week. Concerns about logistics disruptions in the Red Sea and increased U.S. energy production were also factors. Demand concerns persisted due to a Federal Reserve official's comments on interest rates. Trading in Asia is expected to be thin due to holidays.
Originally Published 2 years ago — by Reuters
Germany's chemicals sector, the country's third-biggest industry, is facing supply disruptions and higher freight costs due to delayed shipments via the Red Sea, as container shippers have diverted vessels away from the Suez Canal following attacks by Yemen's Houthis. This challenge comes on top of higher energy and materials costs, impacting companies' production and leading to frank discussions with customers. While some companies are mitigating the impact by ordering earlier and switching to air freight, others are less affected due to strong regional footprints and sufficient safety stocks.
Originally Published 2 years ago — by Fox Business
Oil prices have increased by nearly 2% due to concerns over supply disruptions following U.S. retaliation against Houthi attacks in the Red Sea. Brent Crude and West Texas Intermediate crude both saw rises in their prices. The conflict poses a threat to oil supply as it could lead to a wider regional conflict and disrupt key shipping lanes. Shipping companies like Maersk have paused voyages in the region due to the increased risk of attacks. The situation is compounded by expectations of strong holiday demand and potential economic stimulus in China, which could further affect oil prices.
Originally Published 2 years ago — by Reuters
Oil prices fell over $1 as concerns about supply disruptions eased due to intensified diplomatic efforts to contain the conflict between Israel and Hamas. Aid convoys arrived in Gaza from Egypt, and there is relief that Israel is holding off on a planned ground incursion, opening up a window for diplomacy. The fear of a wider confrontation in the Middle East, the world's biggest oil-supplying region, had driven oil prices up last week. However, Israel bombarded Gaza and struck Lebanon in the latest developments, causing Asian shares to drift lower. The U.S. suspended sanctions on Venezuela to ease oil supply pressure, and world leaders are engaging in talks to find a solution to the conflict.
Originally Published 2 years ago — by MarketWatch
Oil prices surged by 4% as tensions escalated in the Middle East, with Israel ordering mass evacuations in Gaza. Concerns of a potential ground invasion by Israel have raised the risk of disruptions to oil supplies in the region. The price of West Texas Intermediate crude for November delivery climbed 3.6% to $85.93 a barrel, while December Brent crude jumped 4% to $89.41 a barrel. Gasoline and heating oil prices also rose, while natural gas fell. Geopolitical risks and supply concerns are driving the increase in oil prices, but fears of a global recession may impact demand in the future.
Originally Published 2 years ago — by FX Empire
Natural gas prices are on a bullish wave due to supply disruptions and weather conditions. Labor unrest at Chevron's LNG export facilities in Australia could impact global supply, potentially leading to a surge in LNG prices. The decline in operational oil and gas rigs in the US also signals a tightening domestic supply. The upcoming solar eclipse in Texas highlights the reliance on gas-fired generators to fill renewable energy gaps. Gas futures have been rising, and the market is expected to sustain its bullish trend in the short term, driven by supply disruptions and increasing demand. However, traders should be cautious as geopolitical, domestic, and renewable energy factors could introduce volatility.
Originally Published 2 years ago — by CNBC
Veteran investor David Roche, president and global strategist at Independent Strategy, has a contrarian view on grain prices, predicting a 13-15% annual increase in wheat prices over the next two years. Roche cites potential disruptions in grain supplies due to climate change, including reduced water levels in crucial arteries like the Mississippi River, as well as the impact of El Nino. He also highlights the ongoing Russia-Ukraine war as a factor constraining global grain supply. Roche expects the stock-to-usage ratio for wheat to decline, leading to higher prices.
Originally Published 2 years ago — by CNN
US oil prices surpassed $90 a barrel for the first time in 10 months, driven by concerns about supply disruptions in Libya and extended supply cuts by Saudi Arabia and Russia. This surge in oil prices threatens to push gasoline prices even higher and exacerbate inflation across the economy. Despite easing demand, gas prices are just pennies away from their highest level of the year, with a national average of $3.86 per gallon. The recent increase in energy prices is undermining the progress made by central banks in combating inflation, as rising gas prices contributed to higher-than-expected inflation reports in August.
Originally Published 2 years ago — by Barron's
The recent mutiny in Russia had little impact on energy markets, with prices barely moving. This is due to the market being well-supplied and a weak global economy dampening demand. However, there are still risks that could rattle markets before summer's end, such as internal dissent and Putin's vulnerability. While the attempted mutiny did not cause energy price spikes, complacency can be dangerous. Supply disruptions within Russia could trigger higher prices, but the impact might be short-lived due to a slowing global economy. Despite the uncertainties, there is enough supply to keep prices muted until real disruptions occur. The risk premium on oil is not being priced in by traders, but further disruption could still materialize. Putin's response to the mutiny has shown his vulnerability and lack of resolve, which could have chaotic consequences if his grip on power continues to slip. The extent of the Wagner Group's reach and influence raises underappreciated market risks, and the possibility of a bloody mess still looms. Other risks to Russian supply include domestic terrorism, martial law, and loose nukes. With Saudi Arabia's production cut approaching, the market becomes more vulnerable, and the risk premium is expected to rise. Summer surprises may await in energy markets.
Originally Published 2 years ago — by Axios
European Central Bank president Christine Lagarde warned that the global economy is becoming more fragmented into competing blocs, leading to lasting instability resulting in lower growth, higher costs, and more uncertain trade partnerships. The pandemic, war in Ukraine, climate concerns, and deepening tensions between the US and China could make these problems more routine. Policymakers need to focus on securing resilient supply chains with allies and diversifying energy production, rather than simply using fiscal policy to supplement people's incomes, which is inflationary.