Brent: Stable prices follow short squeeze – Rabobank
Rabobank strategist Michael Every notes Brent Oil holding steady around $85-86 per barrel after an aggressive short squeeze. Every links this stability to ongoing Middle East tensions, United States (US) sanctions enforcement in Hormuz, and strategic efforts to develop alternative pipelines. Every references energy analyst Joe Delaura’s expectations for Brent and broader LNG dynamics without changing its neutral stance on prices.
Brent holds steady near $85-86
"Brent is still stable at $85-86, in line with our energy analyst Joe Delaura’s expectations, following the aggressive short squeeze just seen."
"Yet President Trump is again threatening to hit Iranian power plants and bridges next week if no deal is reached; Axios reports that Trump just held a Situation Room meeting on massive new strikes that are wide enough in scope to force Tehran to back off in Hormuz; the Houthis might threaten the Red Sea after announcing Saudi airspace is not safe for overflight; and Israeli PM Netanyahu warned Iran if his country is attacked, the response will be a “decisive blow.”"
"Trump also just hosted Iraq’s PM for talks on a final US troop withdrawal set for end-September, Iran, and oil - where the US is supporting efforts to revive an Iraq-Syria crude oil pipeline as another Hormuz workaround."
"Trump also dropped his 20% Hormuz toll in favour of GCC FDI pledges into the US."
"So, if the US starts a war to control Hormuz but can’t, even if it gains during fighting as an LNG and helium exporter, why not then ensure the strait is not a chokepoint?"
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)