IEA to Discharge 400 Million Barrels of Oil in Biggest-Ever Release
Get caught up.
The IEA agreed to release 400 million barrels from its emergency oil reserves in the biggest-ever discharge, after the Middle East war caused prices to spike. “The oil market challenges we are facing are unprecedented in scale,” IEA Executive Director Fatih Birol said today.
Oil markets have been in turmoil since the US and Israeli war on Iran effectively closed the Strait of Hormuz, through which a fifth of seaborne crude gets shipped. The UK Navy said three vessels were hit with suspected projectiles in the Strait and the Persian Gulf today, underscoring the risks.
The volatility in oil markets have yielded an opportunity for some traders to profit. A fund run by Pierre Andurand gained 6% last week as oil prices soared, we’re told. Some other major hedge funds didn’t fare so well, with Coatue Management and Citadel vehicles suffering losses.
Iran’s capacity to produce the rudimentary Shahed-136 cruise missiles that have menaced other Gulf nations has been curtailed but not eliminated by US and Israeli air strikes. The missiles are slow and easy to spot, but can be easily and cheaply produced, and shooting them down is eating into supplies of expensive interceptor missiles. — Philip Lagerkranser
Porsche is cutting more jobs to make up for tariffs and revamping its electric-vehicle strategy, new CEO Michael Leiters said. The luxury carmaker expects a slight decline in sales this year as it loses ground in China, historically one of its top markets. Porsche will also reduce management layers as well as hierarchies and add models positioned above the 911 as it seeks to boost profits.