The price of “Brent” crude oil has reached its highest level in the last 5 months.
elchi reports that the price of “Brent” is at its highest level since May.
According to experts, prices are rising due to Iran’s threats against the Strait of Hormuz and high global fuel prices. The price of “Brent” has increased by more than 80 percent this year due to the impact of conflicts in the Middle East and Ukraine. In addition, the market is facing increasing pressure due to supply constraints of refined products. Market participants are assessing the threat of attacks by Iran that could disrupt energy flows and high fuel prices worldwide.
Despite the recent increase in tension in the Strait of Hormuz, crude oil exports from the Gulf have remained consistent. The faster-than-expected recovery of crude oil flows from the Gulf allows the market more room to “breathe”. However, this is weaker in refined products, where buffer stocks and product flows are still limited. A sharper increase in the price of refined products is observed, as renewed attacks on tankers and energy infrastructure keep geopolitical risks high.