Middle East Tensions Fuel Rise in Oil Prices

Oil prices are rising due to escalating tensions in the Middle East. The recent shutdown of Saudi Arabia's 7m b/d East-West pipeline has increased supply concerns, following a series of attacks on the country's energy infrastructure.

The IEA made aggressive cuts to its demand forecasts for this year, citing ongoing disruptions in the region. Global oil demand is now expected to fall by 2.5m b/d YoY, with 940k b/d more than previously forecasted.

Middle distillate markets are also experiencing tightness, with record gasoil and diesel cracks seen at around $84/bbl and $110/b/bl respectively.