Strait Closure Extends, Fueling Crude Futures Rally

Deep News05-19

As the closure of the Strait of Hormuz persists, global crude oil supply is expected to tighten further, prompting crude futures to rise after a brief decline. Ritterbusch & Associates noted in a report, "We believe current price levels for WTI and Brent crude reflect only a fraction of the anticipated ultimate supply loss." The firm stated, "There remains high uncertainty regarding a near-term reopening of the Strait of Hormuz." Furthermore, given that restoring crude flows through the strait and bringing shuttered production back online could take months, "a return to pre-conflict crude price levels by year-end appears highly unlikely." The most actively traded WTI crude rose 1.7% to $102.76 per barrel; Brent crude advanced 1.5% to $110.89.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment