Crude Oil Fundamentals: Supply Disruptions a Cause
For Worry
Sources: IEA, Morgan Stanley Commodity Research
• Crude prices, despite some weakness following the tragedy in
Japan, remain elevated, with Brent prices trading near $115/bbl
as growing unrest in the MENA increases supply at risk.
• Tragic earthquakes and tsunamis in Japan prompted a bout of
risk-aversion; however, crude’s weakness was short-lived, with
unrest in the MENA region again coming into focus. The
disruptions in Japan are unlikely to impact demand materially –
indeed, crude and fuel oil demand may increase with nuclear shutins
likely to be extended.。。。