Bank of America Warns Brent Could Climb Above $86 as Hormuz Traffic Stays at 5-10 Ships
Updated
Updated · OilPrice.com · Aug 10
Bank of America Warns Brent Could Climb Above $86 as Hormuz Traffic Stays at 5-10 Ships
3 articles · Updated · OilPrice.com · Aug 10
Summary
$86.12 Brent and $80.72 WTI rose more than 3% Monday as Bank of America warned oil could keep climbing into winter without a U.S.-Iran deal to reopen the Strait of Hormuz.
5 to 10 tankers a day are moving through Hormuz versus about 140 before the war, and the bank said flows must recover to roughly 80 to 100 daily just to stabilize energy markets.
$80-$85 diesel crack spreads signal the tightest stress is in fuels, not crude, with Bank of America citing true shortages in diesel, gasoline and global natural gas and record refining margins.
9.7 on Bank of America's bull-and-bear indicator prompted a call to get more defensive, as thin inventories and near-record U.S. stock prices leave investors exposed to another inflationary energy shock.