As the geo-political world enters that post incident period of claim and counter claim, the markets are trying to gauge what this means for numbers, the direction is clearly up. But there seems to be discomfort or even distress, trying to work out how far prices could move up, and how long this will all last, not just until we get to know the true extent of the damage, but also how long it’s going to take to repair.
The power struggle in the Middle East may well have taken a new and more immediate twist, potentially sending huge shockwaves through the oil markets once the weekend is over and electronic trading commences Sunday evening. As a result, the whole international LPG complex faces a major jolt, not only on the back of any spike in crude oil pricing but also potentially as a result of production cutbacks in Saudi Arabia.
All eyes have been on the LPG shipping market for a few months now, as rates have been heading in one upward direction. Aggressive hostile activity in the Arab Gulf with drones being shot down and tankers being attacked, has sent war risk insurance premiums soaring. The geo-political landscape is quite strained right now, so what’s next?