US WTI crude oil for May delivery and Brent crude for June delivery both increased. WTI surpassed Brent due to concerns about short-term supply disruptions in the Strait of Hormuz. Brent crude rose 7,8% to 109,03 USD per barrel, while WTI increased 11,4% to 111,5 USD.
According to data from S&P Global, the spot price for Brent shipments reached 141,36 USD per barrel, the highest level since the 2008 financial crisis.
Spot prices reflect demand for Brent crude to be delivered in the next 10-30 days. High prices for early deliveries indicate that physical supply is very tight, as Iran has closed the Strait of Hormuz, a route for 20-25% of global crude oil and 30% of global LNG.
 |
US WTI crude oil for May delivery surged past 110 USD per barrel, exceeding Brent prices. *OilPrice*
Crude oil prices continued to rise after President Donald Trump's statement on 2/4 that the conflict could last at least 2-3 more weeks. He also left open the possibility of escalation, with the US potentially targeting Iranian oil facilities.
Investors fear that a prolonged conflict will cause global energy costs to rise, fueling inflation and curbing economic growth. Gasoline prices in the US have increased 37% since the conflict erupted, averaging 4,08 USD per gallon (about 1,08 USD per liter), according to the latest figures from the American Automobile Association (AAA). US consumers face increasing cost pressures, as prices from food to airfares are climbing, forcing many families to reconsider spending.
"The fog of war remains thick, and oil supply is too low to signal safety," noted Felix Vezina-Poirier, chief strategist at BCA Research.
Meanwhile, the US stock market opened lower yesterday but gradually recovered after news that Iran and Oman are establishing a mechanism to facilitate vessel passage through Hormuz. Investors are now focused on when oil flow could resume through this strategic maritime route.
The DJIA index fell 61 points, or 0,13%, narrowing its decline after at one point losing over 650 points during the session. The S&P 500 and Nasdaq Composite rose 0,11% and 0,18% respectively, reversing declines of over 1,5%.
Tu Anh (*CNN*)
