We know what’s coming and we are prepared.
🛢 Oil markets could be a month away from the moment of truth. Brace for a ‘non-linear’ price spike and panic buying, analysts warn
Dire warnings about oil supplies are coming from everywhere lately as the Strait of Hormuz remains largely closed while President Donald Trump’s trip to China failed to produce a breakthrough to reopen the critical waterway.
While investors have been trading on hopes that the Iran ceasefire will remain intact, there is little sign that the oil trade will return to normal soon, forcing them to reckon with the reality of worsening shortages and an imminent tipping point ahead.
JPMorgan predicted that commercial oil inventories in the developed world could “approach operational stress levels” by early June. Saudi Aramco said global inventories of gasoline and jet fuel could reach “critically low levels” ahead of the summer.
The International Energy Agency warned the world is drawing down oil inventories at a record pace, with 164 million barrels released by governments and industry as of May 8.
“Rapidly shrinking buffers amid continued disruptions may herald future price spikes ahead,” IEA said in its lately monthly report.
The U.S. and Israel launched their war on Iran two and a half months ago, and analysts expected the Strait of Hormuz to reopen by the end of May or early June.
That’s looking less likely as Iran attacks ships in the Persian Gulf while the U.S. military is still enforcing a blockade on Iranian oil. Meanwhile, the Navy’s efforts to reopen the strait with warships is on hold.
“But if the Strait remains effectively closed and commercial oil inventories in the OECD continue to be run down at the same pace as they were in April, oil stocks could reach critically low levels by the end of June,” Hamad Hussain, climate and commodities economist at Capital Economics, said in a note on Wednesday.
He estimated oil prices could top $130-$140 a barrel next month if the strait remains closed and inventory depletion rates remain steady.
On Friday, Brent crude futures gained more than 3% to close at $109.26 a barrel as China offered no hints that it would lean on ally Iran to normalize tanker traffic.
In 1983, America's biggest daytime talk show did something that's never happened since.
It spent an hour on a live debate on the DPT shot and vaccine mandates. Injured kids were in the studio, and the host asked what no host would dare ask today:
"Why does it have to be a law? Should we have the freedom to decide?"
🇺🇸 A Red Baron delivery worker went viral after snapping at a social media prankster who pretended to steal $10 from his phone via Apple Pay while he was working.
The father of four broke down over his exhausting schedule and financial struggles, prompting the internet to rally behind him. A GoFundMe has since raised more than $500,000, while Red Baron publicly backed the employee and confirmed his job is safe.
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New York fined private Amish schools $118,000 for refusing vaccine mandates.
Their lawyer says only the Supreme Court can save them now.
BREAKING: Scientists discover 413 security vulnerabilities in connected vehicles that could allow hackers to interfere with critical systems, including steering and braking.
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