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Why Isn't Oil Above $100 Despite Supply Disruptions?
Alternative Gulf routes and rising non-OPEC supply have kept Brent near $95 a barrel, even as Chinese demand weakens, analysts said.
- On Monday, global oil benchmark Brent crude remained below $100 a barrel despite recent U.S.-Iran conflict escalation disrupting Gulf exports from the Strait of Hormuz and the Red Sea.
- Crude oil shipments from Middle East producers dropped to about 11 million bpd, down from 18 million bpd before the Iran war began seven months ago, according to Argus.
- While flows through the Strait of Hormuz fell to below 2 million bpd, exporters utilized alternative routes to mitigate shortfalls as China slashed seaborne crude shipments to 7 million bpd.
- "At the moment, it's telling us that physically things are incredibly tight," said David Fyfe, chief economist at Argus, citing record diesel shortages.
- Goldman Sachs raised its Brent and West Texas Intermediate forecasts by $5 a barrel for December 2026 and 2027, expecting Middle East shipping disruptions to persist into next year.
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10 Articles
10 Articles
The Economic Times+3 Reposted by 3 other sources
Why isn't oil above $100 despite supply disruptions?
Global oil prices remain below one hundred dollars per barrel. Significant volumes continue to flow through the Strait of Hormuz. Gulf exporters utilize alternative routes and means to mitigate shortfalls. Other producers are stepping up output to fill supply gaps. Demand destruction in petrochemicals and fuels remains substantial.
·Mumbai, India
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Demand remains the main constraint on prices
Coverage Details
Total News Sources10
Leaning Left0Leaning Right3Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
C 57%
R 43%
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