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U.S. Crude Oil Inventories Reduced as Middle East War Resumes
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Inventories are being reduced and legacy exporters in the Middle East are unable to deliver as tensions escalate in the Persian Gulf region.
By Brian Ford, Editor-in-Chief
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Have you paused to consider what might lie beneath the noise of war in these energy commodity markets? Stateside, the Hub has collapsed 8% on bloated storage, retreating heat, and an intensifying El Niño--supply drowning demand even as crude spikes on inventory scarcity and increasing geopolitical premiums. Meanwhile, countries such as India--which imports 85% of its fuel--watches inflation climb to 4.38%.
Although big banks are expected to report big earnings, in part because of the AI boom, there is a quiet tell this boom might turn into a bust: firms are rehiring the humans that AI couldn't replace. If such a bust were to occur with the global economy already strained to its breaking point by two wars along with U.S.-China tensions, how likely is it the world would tip into a recession?