Key facts
- Brent crude oil futures traded around $100 a barrel, with WTI futures near $92.
- Disruptions in the Strait of Hormuz and Red Sea, along with attacks on the Caspian Pipeline Consortium, have intensified supply concerns.
- U.S. gasoline prices have risen above $4 per gallon.
- Analysts warn that the energy shock is greater than crude prices alone suggest due to soaring shipping and refining costs.
- Global onshore oil inventories and U.S. Strategic Petroleum Reserve levels are critically low.
Crude oil prices have surged past $100 per barrel, driven by escalating geopolitical tensions and disruptions to critical shipping lanes. The Strait of Hormuz is nearly paralyzed, and attacks by Yemeni Houthis on tankers in the Red Sea, alongside Ukrainian drone strikes impacting Kazakhstan's Caspian Pipeline Consortium, have significantly heightened supply concerns. Brent crude traded at $100.30 and WTI at $91.70, both experiencing substantial weekly gains. Analysts at ING warned that fears of a widening conflict are putting a significant amount of oil supply at risk. Adding to the pressure, U.S. gasoline prices have climbed above $4 per gallon. Experts note that Middle East oil production remains significantly below pre-war levels, with global onshore inventories and the U.S. Strategic Petroleum Reserve at near record low seasonal levels, suggesting further price increases unless de-escalation occurs.