EU Energy Sector Specialist Commentary: Oil - O‘G‘s - Utilities - Infrastructure

Research evidence excerpt

EU Energy Sector Specialist Commentary: Oil - O‘G‘s - Utilities - Infrastructure

ports is among the measures under discussion to stabilize the domestic market after refinery

outages.The government will reassess the situation on Monday, after the Energy Ministry advised against banning diesel exports

for now, citing potential issues like diesel overstocking.

J. P. Morgan View

- FP sold off on Friday, erasing Thursday’s 's rally, as vessels continue to transit the Strait, including via the southern route. Some

sources note that outbound transits are running at ~30% of pre-conflict levels and inbound transits at ~21%, although Oman has

warned European officials that the Strait will not return to its pre-war status and vessels must be approved to transit.

- Saudi Arabia's Ras Tanura has also increased loadings, which likely added to today's move lower, pressuring BRT phys markets

and prompt spreads in particular. FP saw a brief pop on missile warnings in the UAE, which turned out to be a false alert.

Additionally, Trump responded to Iran striking a tanker yesterday, calling it a "foolish violation" of the ceasefire agreement,

though the market largely brushed this off as the US continues to lean toward diplomacy but after exchanging attacks over the

weekend the two sides reportedly agreed to halt further fighting

Markets - SPX was down ¼ % from the European close to finish 5bps lower on the day (7,354). The index opened lower and

then moved around unchanged for the rest of the day. Software vs semis +9.8%, Highest short interest +2% and Cyclicals vs

defensive -5.2%. Overall volumes tracked + 42%, on rebalance, as oil and treasuries rallied with USD moving lower. Healthcare,

consumer discretionary and real estate were the best sectors with tech and industrials the worst.