Hormuz Disruptions Drive Oil Prices Above $130

Oil prices have surged to above $130 per barrel due to disruptions in tanker traffic and a sharp decline in oil flows through the Strait of Hormuz.

The physical price of crude oil has risen despite benchmark oil prices trading in the $100-$108 per barrel range, according to information obtained from a petroleum products exporter.

The reduction of 2-3 million barrels per day in China's oil imports has further pushed up inflationary expectations in the petrochemical products market.