WS #16042
Geopolitical tensions in the Middle East and Eastern Europe remain elevated, with Russia announcing the restart of diesel exports following a deal with the US, which provides some supply relief. However, Ukraine has vowed to resume drone attacks on Russian refineries, keeping the threat of supply disruption alive. Shipping rates for old oil tankers have topped new build prices due to Iran war risks, and Japan’s finance minister expressed concern over yield and FX volatility at the G20. The market is pricing in a complex energy landscape where supply flows are stabilizing slightly but geopolitical risk premiums remain high.
Middle East Escalation and Energy Flows
Geopolitical tensions in the Middle East and Eastern Europe remain elevated, with Russia announcing the restart of diesel exports following a deal with the US, which provides some supply relief. However, Ukraine has vowed to resume drone attacks on Russian refineries, keeping the threat of supply disruption alive. Shipping rates for old oil tankers have topped new build prices due to Iran war risks, and Japan’s finance minister expressed concern over yield and FX volatility at the G20. The market is pricing in a complex energy landscape where supply flows are stabilizing slightly but geopolitical risk premiums remain high.