U.S.-Iran Ceasefire Extension Seen as Detrimental to Energy Market Stability
Rory Johnston, founder of Commodity Context, has expressed concerns over the extension of the ceasefire between the U.S. and Iran, describing it as a 'worst-case scenario' for the energy market. According to Johnston, the extension reduces the urgency to resolve the ongoing oil crisis, while global oil stockpiles continue to deplete. He suggests that China is currently providing the necessary supply to support the physical oil market. However, Johnston warns that if China ceases to draw from its reserves, the market could face either demand destruction or an immediate tightening. 
