Barclays warns that surging oil prices will lead to weeks of supply chain disruptions

LootboxPhobia · 2026-03-16T19:35:10+00:00

Barclays analysts point out that a closure of the Strait of Hormuz could lead to weeks of disruption in global oil supply chains, with refinery inventories declining and supply tightness becoming a focus of concern. Since the Middle East conflict, Brent crude net long positions have reached their highest level since 2020, which will continue to provide support for commodity prices.

LootboxPhobia

2026-03-16 19:35:10

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Investing.com – Barclays analysts say that even in the best-case scenario of reopening the Strait of Hormuz, its closure could cause weeks of disruption during the supply chain readjustment process.

The Strait of Hormuz has been closed for two weeks, disrupting about one-fifth of global oil supplies. Brent crude oil surged above $100 per barrel in the week of March 9, marking one of the most volatile trading periods in recent years.

Barclays notes that over time, some potential impacts are becoming increasingly apparent. Refinery inventories are being depleted at retail terminals, and supply is becoming a concerning issue. Liquefied petroleum gas has become a nationwide problem in India, and some regions in Asia have implemented work-from-home policies.

Since the outbreak of the Middle East conflict, fund managers’ net long positions in Brent crude oil have risen to their highest levels since 2020. According to Barclays, the net long positions saw the largest weekly increase since 2020.

The bank states that it is hard to imagine this situation not supporting commodity prices for some time.

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