Brent Oil Price Nears $100 as Hormuz Traffic Hits Lowest Level Since May
Oil prices have risen amid ongoing tensions in the Middle East, with Brent crude trading near $97 a barrel and West Texas Intermediate (WTI) above $92. The increase follows US strikes on Iranian oil tankers over the weekend, which has raised concerns about supply disruptions.
Average vessel traffic through the Strait of Hormuz has been at its lowest since May, with around 10 commodity vessels crossing per day. This is significant because the strait handles roughly a fifth of global oil supply. Even without a complete closure, slower traffic and higher insurance costs can tighten the physical market.
Commerzbank's commodity team notes that estimates of crude flows through Hormuz vary widely, making it difficult to assess the outlook. However, upcoming reports from the EIA, IEA, and OPEC may provide a clearer picture of supply disruptions and global demand.