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“We're Living On An Oil Market Credit Card”: Analyst Sounds Alarm

energy_supply_shockGlobalOilPrice22 Sept, 13:37 UTC

Context

The oil market is living on borrowed time as flows through the Strait of Hormuz remain disrupted and the cushions such as stock draws and low Asian demand are running thin, according to Saul Kavonic, Senior Research Analyst at MST Marquee. “We are living on an oil market credit card, we can’t draw stocks forever,” Kavonic told CNBC on Tuesday. Large releases from reserves and China’s very low imports are no longer there to offset some of the supply lost at the Strait of Hormuz. “All these things are allowing the market…

What it means

Causal chain

No clear market signal

How to read a signal
Severity
the event's market impact, 1–5
Direction
↑ / ↓ likely price move for the asset
Exp. move
the size of the abnormal move we'd expect if the call plays out — not a claim a move will happen:
Ssmall<1%
Mmoderate1–5%
Llarge>5%
Most flagged events don't move beyond noise; those count against us (see the track record).
Timeframe
the window we measure over:
1dshort
5dmedium
21dlong
Conviction
how well-established the directional call is (textbook → speculative) — not a guaranteed outcome:
low
average
strong

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Not investment advice · for informational purposes only. Generated 22 Sept, 13:43 UTC