Oil Market Increasingly Prices Cost of Unresolved War

Dow Jones
4 hours ago

0849 GMT - The oil market is increasingly pricing the cost of an unresolved war, Phillip Nova'a Priyanka Sachdeva says in a note. The latest disruption is no longer limited to military escalation, as reports of attacks on vessels passing through the Strait of Hormuz bring the risk directly into the physical oil supply chain, the analyst notes. The most feasible outcome now looks like stretched negotiations and prolonged trouble for oil flows, rather than a quick resolution, she says. The longer the disruption continues, the greater the risk that higher crude prices become embedded into inflation expectations and eventually into monetary policy decisions, Sachdeva adds.

 

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