StanChart: $95 Per Barrel Is The New Oil Price Equilibrium
- Oil prices jumped above $100 after Iran’s IRGC seized vessels in the Strait of Hormuz, escalating tensions despite an extended ceasefire.
- Markets are being driven by geopolitical headlines, with tight physical supply and disrupted flows forcing major production cuts in the Gulf.
- Analysts expect sustained higher oil prices, even post-conflict, while gas markets remain relatively stable due to ample supply.
Oil prices were rallying again on Wednesday after Iran's Islamic Revolutionary Guard Corps (IRGC) captured two commercial vessels in the Strait of Hormuz. Brent crude for June delivery gained 2.99% to trade at $101.40 per barrel at 3.49 pm ET, while the corresponding WTI crude contract was up 3.18% to change hands at $92.52/bbl. Iranian state media reported that the vessels violated maritime regulations, operated without permits, and tampered with navigation systems. The IRGC identified the seized ships as Panama-flagged MSC Francesca and Liberia-flagged Epaminondas. A third ship, identified as the Euphoria, was also fired upon and reportedly became stranded near the Iranian coast. The seizures came just hours after U.S. President Donald Trump announced that he is extending the ceasefire with Iran indefinitely to allow its leadership time to present a unified proposal to end the ongoing war. Trump, however, directed the U.S. military to continue the naval blockade of Iranian ports. Read more.
Source: https://oilprice.com/Energy/Crude-Oil/StanChart-95-Per-Barrel-Is-The-New-Oil-Price-Equilibrium.html