Eurodollar University Something Just Broke in the Global Markets
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Mar 10, 2026 A chaotic Asian market open sent oil toward $120 and sparked frantic buying that rippled through stocks and bonds. Discussion covers tanker jams at the Strait of Hormuz and Middle Eastern output cuts. The conversation highlights record benchmark spreads, risks of prolonged backwardation, and how supply shocks could strain Asian governments and global markets.
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Short Run Oil Panic Exposes Global Fragility
- The immediate oil spike to nearly $120 revealed extreme fragility in global markets and the real economy.
- Panic buying in Asia drove front-month WTI from $75 to nearly $95 in days, showing acute short-run supply stress tied to Hormuz disruptions.
Flow Disruption Turns Price Spike Into Real Shortage
- Physical flow constraints around the Strait of Hormuz can convert transient panic buying into sustained supply shortages.
- Producers are cutting output and tankers are avoiding Hormuz, filling on-land storage and forcing longer disruptions beyond just price spikes.
Watch Private Credit And Employment For Spillovers
- Monitor private credit and employment indicators closely because energy-driven shocks can cascade into credit liquidations and job losses.
- Jeff Snider encourages attending a focused webinar to review private credit, labor weakness, and oil shock scenarios.