Something for your Espresso: Balancing soft inflation and Houthis
The Red Sea tensions are growing amidst very soft inflation numbers. Is the duration rally at risk of being derailed?
![Something for your espresso](https://stenoresearch.com/wp-content/uploads/2023/01/Something-for-your-espresso.png)
Morning and Happy New Year from Europe.
There has been plenty of action in the Red Sea over the New Years weekend and oil markets also react from the get-go of the year.
Satellite photos reveal that the re-routing of ships continues and geographical divergences are starting to show up in Dirty Suezmax prices, hinting of a rising price-impact of the turmoil.
Being long Energy is probably a decent hedging idea of long duration bets into January.
Chart 1: Rising divergences in Dirty Suezmax prices
The Red Sea tensions are growing amidst very soft inflation numbers. Is the duration rally at risk of being derailed?
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