Outlook For Oil As Strait Of Hormuz Closure, UAE Exit From OPEC Roils Energy Markets

Impact on fertilizer beginning to cause issues for global food supply. With the Strait of Hormuz still closed and the UAE signaling plans to leave OPEC, the oil outlook is becoming more uncertain. Bart Melek, Head of Commodity Strategy with TD Securities, explains what this could mean for energy prices TD Wealth is an integral part of the TD Bank Group, which has approximately 24 million customers worldwide, 85,000 employees and CDN $1 trillion in assets on April 30, 2015. In Canada, TD Wealth services customers through: · TD Direct Investing which provides clients access to the information, tools and support that empower them to invest for themselves with confidence. · TD Wealth Private Client Group, which provides discretionary wealth management for high net worth clients and businesses. · TD Wealth Private Investment Advice provides full service brokerage for investors who want a high level of tailored advice and solutions. · TD Wealth Financial Planning develops and implements a financial plan for individual clients. At TD Wealth, whether you invest yourself or benefit from the knowledge provided by your advisor, you gain access to some of the industry's most highly regarded investment analysts, economists and market strategists. With current supply deficits, all producers -- including UAE -- are expected to maximize output, making OPEC quotas irrelevant for at least 1.5-2 years. Physical constraints could emerge within weeks, potentially pushing Brent to $150 if the closure continues and supply remains constrained. If central banks respond to higher inflation with restrictive policy, real rates rise, increasing carry costs and pressuring gold and silver prices in the near term.