🚨Oil Prices Surge as Gulf War Disrupts Tanker Traffic
Tanker traffic through the Strait of Hormuz drops by 90%
TL;DR
Tanker traffic through the Strait of Hormuz has dropped by over 90%, causing a supply disruption in the oil market. Brent crude hit $108 per barrel, and tanker shipping ETFs saw massive gains.
Tanker traffic through the Strait of Hormuz has dropped by over 90%, causing the largest supply disruption the oil market has ever seen. This disruption has led to a surge in oil prices, with Brent crude reaching $108 per barrel. The impact on shipping stocks has been significant, with the Breakwave Tanker Shipping ETF rising more than 600% in the first two months of the war. For developers and businesses relying on stable oil prices, this disruption could affect supply chains and logistics, increasing costs and potentially causing shortages. Day rates for some supertankers have skyrocketed from under $100,000 to a record of about $860,000.
Key Points
Tanker traffic through the Strait of Hormuz fell by more than 90% due to the Gulf war.
Brent crude reached $108 per barrel on September 24, a significant increase.
Breakwave Tanker Shipping ETF rose more than 600% in the first two months of the war.
Day rates for some supertankers went from under $100,000 to $860,000 on September 10.
Ukrainian drones have hit Russian refineries at least 70 times this year, pushing Russia's refining output to a two-decade low.
Why It Matters
If you're managing supply chains or logistics for businesses relying on stable oil prices, the disruption in tanker traffic and surge in oil prices could significantly increase costs and potentially cause shortages. For instance, shipping stocks have seen massive gains, and day rates for supertankers have skyrocketed.
Comments
Be the first to comment
Enjoyed this article?
Get it daily. 7am. Free. Reads in 5 minutes.
Join 3,549 builders reading daily.