Brent Crude Prices Hit $100 Amid Strait of Hormuz Attacks
Brent crude prices have held above $100 per barrel for a second session, marking its first close above the round number since late July. This comes as attacks on shipping near the Strait of Hormuz tighten an already strained physical market.
The global benchmark was last at $100.40, giving back part of Wednesday's gain, while WTI traded around $95.5. Over the past month Brent has risen 12.9% and it is up 51% over the year.
Four forces are capping the rally: barrels are still getting out despite attacks; alternative routes are absorbing volume; non-OPEC producers are filling part of the gap; and demand destruction is doing the rest, with world oil demand forecast to fall by 1.6 mb/d in 2026.
US retail diesel hit a record $5.820 a gallon in early September, and the IEA notes that tighter light and middle distillate markets have pushed Atlantic Basin refining margins to record highs.