Straightening Up the Strait (Video)
A series of unfortunate events
We’ve gone to Mordor and back again.
In a video, I summarize some of the current state of play related to the Strait and what some implications are. Included below are the series of events that show how the oil market adapted as time passed.
A month ago, I could sense that adaptation was going to have longer term outcomes.
Loosening The Strait's Jacket: Oil Market Creative Destruction
The pandemic was a classic black swan event—unpredictable and unprecedented (though some would argue that). The Iran War is more of a gray rhino event, defined as a highly probable, high-impact crisis that is blatantly obvious yet widely ignored until it happens.
It also looked like this after three months…Was the Strait hijacked?
Over a Barrel? The Middle East Crisis' Next Phase
The news of the Iran crisis’s impact on oil and gas markets is challenging to follow. What is clear, though, is that more shortages or shortfalls are upon us, with Asia and Europe the hardest hit. Th…
This article below highlights the initial states of stress but the top video recap includes the very items noted as valuable that came mitigated the worst outcomes. The article embedded inside the “World More Worried…” about how oil price dictates many macroeconomic variables proved how robust markets are.
Valuable factors:
US exports
Backup infrastructure
Spare capacity
World More Worried About Energy Crisis
While the U.S. focuses on silicon-related business activity and AI, the energy to support it is foundational. From an analysis, by request, of Saudi Aramco, Saudi Arabia’s national oil company and the oil crisis, a few key takeaways emerged that offer more facets of the crisis’ continuing impact. For one, the firm is the most valuable brand in Saudi Arabia, and right now—the world—reaching a $6.6 trillion valuation. A number of items are now more valuable too: