Energy markets expert and author Dan Dicker warned on Bloomberg This Weekend that global oil stockpiles are near a "danger zone." He stated that ongoing supply disruptions have significantly drawn down inventories, with millions of barrels per day unable to reach end markets. Dicker cautioned that if inventories continue to fall, crude prices could jump from their current levels to as high as $135 a barrel.
The program also covered stalled negotiations between the US and Iran. The talks, aimed at a permanent peace deal and curbing Tehran's nuclear program, were delayed after an intensification of fighting in southern Lebanon. This comes despite a memorandum of understanding (MOU) between the US and Iran that had opened a two-month window for negotiations. President Trump had expressed optimism about the success of these talks just days prior during the unveiling of a new Air Force One.
Adding to the market stress, Iran asserted control over the Strait of Hormuz, stating that ships require its permission and mandatory insurance to cross. This move casts a new cloud over the already troubled US-Iran talks. The immediate impact on vessel traffic was unclear, but millions of barrels of oil had already been quietly escaping the waterway daily even before this latest development.
