Oil Markets Are In Deficit, But Not Shortage, Sen Says

Oil markets are in a "massive deficit," according to Amrita Sen of Energy Aspects, though she says conditions have not yet reached an outright shortage. Her main concern is that the anticipated reopening of the Strait of Hormuz keeps being delayed, which prolongs supply-risk uncertainty for crude markets. The comments point to elevated geopolitical risk and a supportive backdrop for oil prices.

Analysis

Oil markets are in a "massive deficit," according to Amrita Sen of Energy Aspects, though she says conditions have not yet reached an outright shortage. Her main concern is that the anticipated reopening of the Strait of Hormuz keeps being delayed, which prolongs supply-risk uncertainty for crude markets. The comments point to elevated geopolitical risk and a supportive backdrop for oil prices.