Crude Flows Through Strait Again as Diesel Premium Hits Record High
The global energy market received some welcome news as Saudi Arabia managed to get crude oil flowing through the Strait of Hormuz again, and Iraq added barrels to the mix by transporting them through Turkey. This development is a relief for the crude side of the energy market, which had been facing significant disruptions.
In the same week, Saudi Arabia also restarted the East-West Pipeline, further alleviating concerns about supply chain bottlenecks. However, it's worth noting that the diesel side of the equation continues to face challenges, with gasoil's premium to Brent hitting a record high.
An Iranian official suggested that the Strait of Hormuz could be reopened for seven days, but this statement was met with skepticism and caused crude prices to temporarily dip. The White House responded by proposing the ban on diesel exports in an effort to address the surplus.