Introduces the topic of supply constraints and supply being taken off the table in energy markets.
Host 1
Ole Hansen
Struggles to see crude pricing reflecting reality, points to 'higher for longer' risk even with ceasefire due to infrastructure damage and time needed to restore supply.
Ole Hansen
Says Brent at $100+ may reflect reality given massive divergence between refined products and Brent crude, with refineries reaping high rewards due to tight product markets.
Asks where the world can turn for refined products now that Middle East supply is shut out.
Host 1
Ole Hansen
Probably not really anywhere, maybe apart from Russia, but Middle East crude is perfect for middle distillates which US can't supply.
Asks about potential European stance change on Russia sanctions and if factored in.
Host 2
Ole Hansen
European stance change would be step too far; temporary sanction removal is just a small band-aid on massive wound.