All articles tagged with #supply tightness
Micron forecasts the high-bandwidth memory (HBM) market to reach $100 billion by 2028, amid ongoing supply tightness expected through 2026, and reports a strong fiscal Q1 2026 with record revenue and profits.
Crude oil prices have risen for the second consecutive month, with West Texas Intermediate surpassing $80 a barrel, the highest level since November 2021. Factors contributing to the increase include tightness in the supply market indicated by near term contracts trading at a premium, potential extension of production cuts by OPEC plus, higher-than-expected demand from Asia, and concerns about Middle East tensions affecting oil supply routes. Year-to-date, WTI is up 14% and Brent crude is up 10%.
Trafigura, one of the world's largest commodity traders, warns that crude oil prices could face upside risk due to the current tightness in the market. Ben Luckock, Co-Head of Oil Trading at Trafigura, believes that the fair price for oil is in the range of $72 to $88 per barrel, but acknowledges that the market is vulnerable to further price increases. The credibility of Russia's supply cuts remains an issue, as it is difficult to track Moscow's exports. Meanwhile, Vitol's CEO, Russell Hardy, expects some relief in the tight oil market in the next two months due to refinery maintenance, but sour crude supply will remain tight.
The global oil market could experience some relief in the next two months as refineries schedule end-of-summer maintenance, easing supply tightness, according to Vitol's CEO, Russell Hardy. However, the sour crude market will remain tight due to ongoing production cuts by Middle Eastern OPEC+ members. The scarcity of sour crude, mainly sourced from the Middle East, is impacting complex refineries in India, Kuwait, Jizan, Oman, and China. The tightening market for sour crude in Asia is exacerbated by Kuwait's reduced exports and the production cuts by major sour crude producers like Saudi Arabia and Iraq. This has led to price volatility in the oil market, primarily driven by refining capacity constraints.
Oil prices, which have been on the rise for seven consecutive weeks, are set to decline this week due to concerns about China's economic growth and potential interest rate hikes in the United States. The latest economic data from China has raised fears about oil demand, while the prospect of more rate hikes in the U.S. has contributed to bearish sentiment. Despite these concerns, supply tightness and bullish bets from investors continue to support oil prices.
Oil prices rebounded as traders refocused on signs of supply tightness, with Brent crude trading above $83 per barrel and West Texas Intermediate close to $80 per barrel. Prices had dipped on Wednesday after the Energy Information Administration reported modest draws in crude oil and fuel inventories, and the Federal Reserve announced another interest rate hike. Analysts expect higher prices due to resilient demand, OPEC+ production controls, and a decline in the U.S. rig count. Saudi Arabia may extend voluntary production cuts if prices don't rise substantially.