Oil prices declined somewhat on Wednesday, but Brent crude oil and US West Texas Intermediate crude oil futures were still hovering near four-month highs of $107.8 and $104.6 per barrel, respectively. Rory Johnston, founder of commodity research firm Commodity Context and oil market analyst, said that as of Sunday, the average value of oil transportation in the Strait of Hormuz had risen to nearly 12 million b/d on the 7th, “certainly the highest level since the recovery in June-July after the MOU was signed.” “There is almost no Iranian crude oil in this,” he said. Johnston added that this volume is still less than 60% of pre-war levels. This shows that there is still plenty of room for recovery in strait shipping, and the war in Yemen and pipeline disruptions have added new risks to the already tight crude oil supply pattern.

Oil prices declined somewhat on Wednesday, but Brent crude oil and US West Texas Intermediate crude oil futures were still hovering near four-month highs of $107.8 and $104.6 per barrel, respectively. Rory Johnston, founder of commodity research firm Commodity Context and oil market analyst, said that as of Sunday, the average value of oil transportation in the Strait of Hormuz had risen to nearly 12 million b/d on the 7th, “certainly the highest level since the recovery in June-July after the MOU was signed.” “There is almost no Iranian crude oil in this,” he said. Johnston added that this volume is still less than 60% of pre-war levels. This shows that there is still plenty of room for recovery in strait shipping, and the war in Yemen and pipeline disruptions have added new risks to the already tight crude oil supply pattern.