Brent Crude Stays Below $100 Despite Middle East Supply Disruptions
· Business · Economic Times
Global oil prices remain below $100 per barrel despite ongoing conflict between the US and Iran that has impacted shipping routes in the Red Sea and the Strait of Hormuz. While daily oil shipments from Middle East producers have dropped to approximately 11 million barrels per day from 18 million before the conflict, significant volumes continue to transit the region. Rystad Energy reports that while daily traffic through the Strait of Hormuz has fallen below 2 million barrels, the moving average remains between 4 million and 5 million barrels. Gulf exporters are mitigating supply shortfalls by utilizing alternative shipping routes and ship-to-ship transfers. Additionally, substantial demand destruction in the petrochemical and fuel sectors has helped keep prices capped.
Why it matters
The stability of crude prices below $100 provides a critical buffer for India's import-dependent economy, helping to manage domestic inflation and fuel costs despite regional geopolitical volatility.
Read the original report — Economic Times
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.