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Oil

China's fuel exports have rebounded, but further supply from the world's largest refiner is unlikely to meaningfully ease tightness in global product markets. Fuel exports grew 13% year over year in August after Beijing relaxed its curbs, leaving year-to-date…

Markets woke up to twin Houthi attacks on October 12. On October 9, the Yemen-based, Iran-allied, militant group attacked the King Khalid International Airport with a missile, killing 12 civilians and injuring over 300. Following that attack, President Trump suggested that the US “may” join Saudi Arabia’s fight against the Houthis. On October 11, the airport was struck again, with Saudi Arabia vowing to respond. 

Middle Eastern crude exports are back at pre-war levels, yet Brent remains above $100/bbl. We explain why more barrels haven’t meant lower prices, and why policymakers have no clean fix. Even if Putin follows through on his reported agreement to release Russian diesel supplies into global markets, it is unlikely to meaningfully ease the fuel's supply disruption over the near term. 

Recovering middle east oil exports should ease prices in the near term, but meaningful relief likely awaits a post-midterm ceasefire. We noted yesterday that investors should pay more attention to global oil inventories, as they will illustrate whether global…
Energy inventories will determine whether global energy supply is improving enough to warrant lower prices. “Dark transits” of crude oil through the Strait of Hormuz have increased thanks to a major US military effort to protect tankers. Our commodity…
The USD-oil correlation reached a record high this year, confirming that energy shocks now reinforce dollar strength rather than weigh on it, arguing for overweighing USD against energy-importing currencies into further supply disruptions. This positive…
Our Commodity strategists expect a wider US-to-global diesel discount and weaker diesel prices versus other US refined products as export restrictions become increasingly likely. Record retail diesel prices above $6.50 a gallon and mounting political pressure…

Record diesel prices and mounting political pressure make some form of US export restriction likely. But it wouldn't be a clean solution. We reveal why relief would be fleeting, who would pay the price, and how to trade it.

Oil prices and US Treasury yields have moved in lockstep this year, but oil matters less for US yields than the correlation suggests. The joint rise is not purely a coincidence. Higher oil prices play a role in the hawkish repricing of the Fed's policy path,…
A busy geopolitical weekend reinforced that both Russia and Iran are still calibrating escalation to avoid triggering a broader conflict. Our Monday BCA Live & Unfiltered meeting focused on the weekend’s geopolitical developments. Russian and Ukrainian…