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Alexander Stahel, founder and CIO at Commodity Private Equity Fund, reports that Saudi crude exports have dropped 74 percent. He notes the narrowing of the Red Sea escape route, forcing surviving barrels to take a $3–4 per barrel detour via the Suez Canal into Asia. Despite these logistical challenges, West African crude remains in limited demand, which Stahel attributes to differences in refinery metallurgy.
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Alexander Stahel has previously noted that Tokyo may face pressure to sell U.S. Treasuries to defend the yen as 30-year yields reach highs last seen in 2007. In a separate analysis, Stahel has discussed the ongoing price divergence between oil products and crude, suggesting that this gap could persist until changes in refinery capacity. These observations provide context for Stahel’s views on current crude and product flows.