Brent Crude Hits Record Highs Amid Middle East Tensions
Brent crude has reached record highs due to escalating tensions in the Middle East and concerns over disruptions to global energy supplies.
On Wednesday, Brent was trading at $99.59 a barrel, just shy of the psychologically important $100 mark, while WTI was at $94.53 a barrel.
The conflict has led to a significant drop in oil exports through the Strait of Hormuz and the Red Sea, but alternative routes have helped absorb part of the supply shock.
Rystad Energy chief economist Claudio Galimberti stated that 8 million to 9 million bpd passed through the strait before fighting erupted again on August 30, about twice the previous week's level.
Gulf oil producers have been finding ways to move barrels without relying entirely on Hormuz, using alternative routes and ship-to-ship transfers outside the strait to limit some of the earlier supply shortfall.