Brent Jumps to $109.69 as Hormuz Flows Collapse
Brent crude rose to $109.69 a barrel, up 3.56% on the day, as daily Hormuz flows dropped to 11.62 million barrels from 17.15 million.
Brent crude rose to $109.69 per barrel on October 16, up 3.56% for the day and more than 5% over the week, according to data from Trading Economics.
The surge came as average daily flows through the Strait of Hormuz dropped to 11.62 million barrels in the week ending October 13, compared to a baseline level of 17.15 million barrels, reflecting the impact of tensions in the waterway on supply traffic.
Two other factors added pressure to the market: Ukrainian drone attacks on Russian refineries and an 8.56 million barrel drop in U.S. crude inventories, both of which support higher prices.
Crude approaching $110 per barrel means energy costs are rising for importers and consumers, as the impact of crude prices typically transmits to fuel, transportation, and goods prices, making the Hormuz route the focus of global markets.
What do these terms mean?
Brent Crude: A type of crude oil used as a global benchmark for pricing many crude cargoes in markets.
Oil Inventories: Quantities of crude oil and petroleum products stored, where a decline indicates strong demand or lower supply.
Oil Refineries: Facilities that convert crude oil into products such as gasoline, diesel, and jet fuel.
Weekly Newsletter
Read between the lines before everyone else. Decode the most important economic, tech, and decision-maker movements in the region.. in 5 minutes every Saturday.
