Brent Surges on Geopolitical Risks, Societe Generale Says
Societe Generale analysts report Brent crude prices have rallied due to heightened geopolitical risks, including US-Iran tensions and Houthi blockade threats. Crack spreads in Asia and the US have outperformed as refined product markets remain tight.
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Analysts at Societe Generale, led by Michael Haigh and Jeremy Sellem, note that Brent crude has surged as US-Iran tensions, aggressive rhetoric from President Trump, and Houthi blockade threats increase risk premia in oil markets.
Crack spreads in Asia and the US have outperformed, reflecting tighter conditions in refined product markets compared to crude. The geopolitical backdrop continues to support crude and crack spreads, according to the note.
Source: FXStreet Forex News