Brent Oil Climbs Toward $100 With Hormuz Constrained

Summary

Bloomberg's Will Kennedy reports Brent oil is climbing toward $100 as Strait of Hormuz crude flows remain about half pre-war levels. Product markets, especially diesel, are tight due to constrained Hormuz product flows, Russian refinery attacks, and US refineries running at full capacity. Vitol's CEO says product stockpiles are near empty, driving the oil complex higher and risking inflation. A deal to reopen Hormuz is seen as the key pivot, but no signs of an imminent deal exist.

• Brent oil is marching toward $100 a barrel.
• Strait of Hormuz remains constrained, with crude flows around 10 million barrels a day, about half pre-war levels.
• Oil products, especially diesel, are moving through Hormuz in very small amounts.
• Attacks on Russian refining and US refineries running at 100% add to product tightness.
• Vitol CEO Russell Hardie says product stockpiles are near empty.
• The tight oil complex risks stoking broader inflation.
• A deal to reopen Hormuz is the key market pivot, but no signs of an imminent deal exist.