Kolanovic Warns Of Risk Suez Ship Could Break
Perhaps he is right… but there is one catalyst listed by Kolanovic which would be especially bullish for oil: if the Ever Given ship currently blocking the Suez Canal happens to break, blocking this critical waterway for an indefinite period of time and sending the price of oil exploding higher.
As Kolanovic puts it, "another interesting development of this week was the blocking of the Suez Canal. While we believe and hope the situation will get resolved shortly, there are some risks of the ship breaking." In such a scenario which would be a wet dream for Saudi Arabia, "the canal would be blocked for an extended period of time, which could result in significant disruptions to global trade, skyrocketing shipping rates, further increase of energy commodities, and an uptick in global inflation."
How does Kolanovic trade this? How else - by going long his favorite commodity sector: "This risk can be hedged by buying Oil and associated equities (e.g., energy, shipping, etc.)."
https://www.zerohedge.com/markets/kolanovic-warns-risk-suez-ship-could-break