Brent Crude Prices Soar as Strait of Hormuz Disruptions Persist
The US Energy Information Administration (EIA) has raised its forecast for Brent crude prices to $86.81 per barrel in the third quarter, a significant increase from its previous estimate of $81.91.
This upward revision is largely due to ongoing disruptions to oil shipments through the Strait of Hormuz, which have caused global oil inventories to decline by 4.2 million barrels per day (bpd) in the second quarter and are expected to fall further by 3.8 million bpd in the third quarter.
Oil flows through the strait have decreased by more than 77% since last year, from 21.6 million bpd to just 4.9 million bpd in the second quarter of this year.
The EIA also expects global oil demand to total 102.7 million bpd, a 1.2 million bpd drop from last year, with non-OECD countries accounting for approximately 800,000 bpd of this decline.