HSBC Flags a Super-Squeeze In the Oil Market

The Middle East crisis and the still closed Strait of Hormuz have created a “super-squeeze” in oil markets, which could lead to sharp price spikes, analysts at HSBC say.

Prices have rallied in recent months not because of some “super-cycle” but because of the massive supply disruption and an actual squeeze in physical supply, the UK-based bank said in a note carried by Bloomberg.

“The longer the strait is closed, the more inventories are run down, the more likely it is that we reach ‘tipping points’ in…