Brent Crude Surges Past $91 as Hormuz Transits Plummet and US Reserve Hits Record Low

The price of Brent crude has surged past $91 for the third consecutive session, reaching $90.97 per barrel on Tuesday.

This rally comes as the Strait of Hormuz sees a significant drop in transits, with only five commodity vessels passing through on Saturday and zero on Sunday, a 90% collapse from the previous week's count.

The US Strategic Petroleum Reserve is at its lowest level since 1982, removing the implicit ceiling on crude prices that had functioned as a buffer for four years. Without it, the entire adjustment to a supply disruption has to clear through the futures curve and through demand destruction.