Strategic oil reserves depleting as Gulf tensions fail to spike prices
By
The Economist
Yesterday's bagel, baked twice. Familiar and a bit tough.
Summary
The article discusses how oil markets have remained relatively calm despite renewed geopolitical tensions in the Gulf region, including strikes between Iran and Israel and exchanges between America and Iran. Brent crude prices rose only modestly (1%) after ceasefire threats, trading around $93 per barrel — more than $30 below its April intraday high. The piece suggests strategic oil reserves are depleting rapidly, implying they cannot stave off an energy crunch indefinitely.
Key quotes
· 4 pulledMORE THAN 100 days into the third Gulf war, oil markets have shielded themselves against bad news on the battlefield.
On June 8th, after renewed strikes between Iran and Israel threatened a shaky two-month ceasefire, the price of Brent crude, the international benchmark, rose by just 1%.
Even after subsequent exchanges between America and Iran, early on June 11th it was around $93 per barrel, more than $30 below its intraday high in April.
They cannot hold back the energy crunch for ever
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