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This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document.
Source: Tracy Shuchart
Source: Open Square Capital
Oman crude hit a record $173 per barrel on Wednesday, surpassing even the 2008 Financial Crisis spike. Dubai crude also surged to an all-time high above $150, as buyers scramble to replace supplies cut off by the Strait of Hormuz shutdown. The Hormuz closure has severed ~20% of the world's oil production from global markets, triggering the largest supply disruption in modern history. By comparison, Brent is trading at ~$115 and WTI near ~$95, massively understating the severity of the physical shortage. As a result, the gap between Brent and WTI is now the widest since 2013, as the Iran War disproportionately hits European oil supply. The problem is that Brent and WTI are the most commonly quoted benchmarks, but they only reflect North Sea and US supply conditions, not the Middle Eastern crisis. If the Strait does not reopen, Western oil prices will inevitably catch up, as US and European inventories are depleted and global supply tightens further. The real oil crisis has not even reached Western markets yet. Source: Global Markets, FT
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