Commodities
WTI Surges Past $106 Amid Ongoing Conflict and Supply Squeeze
The oil market is showing signs of a severe supply squeeze as WTI hits $106.31, its highest since May.
Chevron CEO Mike Wirth said earlier this month that oil buffers limiting crude price increases have been depleted, which is now looking like the case.
Refined products are particularly affected, with diesel already at a record high and climbing fast. US Republican Senate leader Mitch McConnell has proposed limiting US diesel exports to break the global oil order.
The ongoing conflict in Iran is exacerbating the situation, with no progress towards peace in sight. The Houthis have knocked out Saudi Arabia's east-west pipeline, which will take 3-6 weeks to repair, and loadings at their Red Sea port have been suspended.