The Real Price Of Oil Is Not What You Think
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Eugenio Catone6.33K FollowersFollow5ShareSavePlay(9min)CommentsSummaryPhysical oil prices are at $112/barrel, much higher than paper oil, and signaling acute supply stress from the ongoing U.S.–Iran conflict.The closure of the Strait of Hormuz has created an unprecedented breakdown in the global energy supply chain, driving a persistent $17 premium in physical oil.Elevated energy costs are already translating into higher inflation, with Eurozone annual inflation jumping to 2.6% in March, led by energy.If the Strait remains closed, stagflation risks rise, and markets may be underestimating the duration and impact of the energy supply shock. J Studios/DigitalVision via Getty Images In less than 48 hours the ceasefire will expire, and the U.S.–Iran war might enter a new phase of escalation. The U.S. wants to start a new round of negotiations today, but Iran doesn’t seem willing to accept. AccordingThis article was written byEugenio Catone6.33K FollowersFollowPassionate about geopolitics and macroeconomics, I express my opinion through my articles and enjoy engaging with all of you. I also write about companies that catch my attention, particularly those in my portfolio. For me, Seeking Alpha is a way to expand and share my knowledge. Graduate in business economics, CFA Level 1 and popular investor on eToro.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.