JPM Warns of Vulnerability That Could Add $20 to Oil Price
Yemen’s Houthi rebels have now formally joined the escalating Middle East conflict, J.P. Morgan analysts, including the company’s head of global commodities strategy, Natasha Kaneva, said in a report sent to Rigzone by Kaneva late Sunday. “While their involvement is not yet decisive, it introduces a second maritime pressure point in the Red Sea, alongside the Strait of Hormuz,” the analysts warned. “The immediate implication is geographic: the conflict is no longer concentrated in the Persian Gulf and around the Strait of Hormuz but now extends into the Red Sea and the Bab el-Mandeb - one of the world’s most crucial chokepoints for crude and refined product flows,” they added.
Now all they need to do is blow up an LNG tanker in the Suez Canal. They can get the price up over $200.
RE