China assembled a strategic petroleum reserve of roughly 1.2 billion barrels by early 2026, equal to approximately 109 days of seaborne import cover, bought at well below market cost from the very barrels Western sanctions were designed to strand.
The conflict in Iran has meant that around a third of global fertiliser supply is stuck behind the Strait of Hormuz. This directly threatens next year's cocoa harvest, which is an essential ingredient in making of Easter egg.
Motilal Oswal is overweight on auto, PSU banks, diversified financials, technology, consumer discretionary, and capital goods and EMS, which are its key preferred investment themes.
