Brent Oil Price Hits $131.97 Amid Market Stress Indicators

AI Summary

The spot price of dated Brent crude reached $131.97 per barrel, an increase of over 7% from the previous session, although it dropped from a Tuesday high of $144.42. Analysts indicate that the disparity between dated Brent and front-month futures highlights ongoing supply constraints due to geopolitical tensions, particularly in the Strait of Hormuz. Approximately 20% of global oil and gas transit through this crucial passage, and experts warn that normalization in shipping traffic may not happen soon. This situation suggests that while prices may fluctuate, physical shortages could persist, impacting overall market stability.