World Is Losing 10 Million Barrels of Oil a Day, Morse Says

At least 10 million barrels per day of oil supply is being lost due to disruption in the Strait of Hormuz, according to Ed Morse of Hartree Partners. That shortfall is roughly ~10% of global oil demand and would exert upward pressure on oil prices, raising inflationary risk and weighing on growth for energy-intensive sectors. Expect increased market volatility and consider energy-related positions and inflation/hedge strategies.

Analysis

At least 10 million barrels per day of oil supply is being lost due to disruption in the Strait of Hormuz, according to Ed Morse of Hartree Partners. That shortfall is roughly ~10% of global oil demand and would exert upward pressure on oil prices, raising inflationary risk and weighing on growth for energy-intensive sectors. Expect increased market volatility and consider energy-related positions and inflation/hedge strategies.