In 2022, oil flow in the Strait of Hormuz averaged 21 million barrels per day, according to the U.S.
Energy Information Administration (EIA).
Saul Kavonic, senior research analyst at MST Financial, said supply disruptions along the Strait of Hormuz could send oil prices significantly higher.
Oil prices traded more than 3% on Monday, extending gains even after notching their sharpest weekly gain since early 2023 last week.
"But seeing where the oil price sits right now the market doesn't seem to hold much probability for such a development at all," he added.
"A significant disruption to these flows would be enough to push oil prices to new record highs, surpassing the record high of close to $150/bbl in 2008," he added...
News articles remains the property of the source. Tellbrief is a news aggregator.