Hormuz Crisis Creates Market Imbalance

The Strait of Hormuz has been experiencing duress, making reliable data scarce due to the war. As a result, oil prices and price spreads are becoming increasingly important in assessing market balances.

In recent months, the market has been grappling with supply tightness, as evidenced by rising price spreads. Just two months ago, global benchmark Dated Brent plummeted over $30 in three weeks to the end of June.