Oil slipped toward $92 for Brent and $86 for WTI, with traders weighing possible US-Iran negotiations and progress in Russia-Ukraine talks. But the shipping situation around the Strait of Hormuz is hardly calming down. Iran’s Revolutionary Guards say two supertankers were disabled by explosions after hitting naval mines. Other tankers remain ablaze, oil spills have reached shore and attacks have hit regional infrastructure.
There’s a strange disconnect in the market. Traders are willing to price in diplomatic progress while the world’s most important oil chokepoint remains dangerous. OPEC+ production also increased in October, led by Saudi Arabia, helping put downward pressure on prices. But extra barrels don’t solve the problem if ships can’t safely move them. The market is betting on a diplomatic solution before the physical risks have gone away.
If you got something out of this, please chip in to keep this site running, or subscribe to go ad-free.
0 views