Oil Prices Soar Amid Supply Disruptions and Geopolitical Tensions
The price of Brent crude oil has surged to $107.63 per barrel on the Vietnam Commodity Exchange (MXV), marking its fourth consecutive day above the 3,000-point mark. This increase is largely due to concerns about supply disruptions in the Middle East, where tensions between the US and Iran have spilled over into shipping lanes.
The Strait of Hormuz has seen a significant decrease in maritime activity, with only 7 ships passing through on September 10th, compared to the 14-day average. Some vessels had even switched off their Automatic Identification System (AIS) to avoid detection, adding to concerns about oil transportation and the geopolitical risk premium.
According to Mr. Ngo Viet Hung, Head of Investment Consulting Department at Ho Chi Minh City Commodity Exchange Joint Stock Company, oil prices are likely to continue rising in the short term due to supply pressures and strong demand for refined products.