The Commodities Feed: Middle East escalation pushes energy prices higher
Energy – ICE gasoil crack hits new record highs Brent pushed back above $95/bbl, reaching its highest level in more than a month, as Persian Gulf tensions escalated further. After weekend strikes, Iran hit two oil tankers in the region yesterday. The US, meanwhile, carried out additional overnight strikes on Iranian targets, adding fresh geopolitical ...
Middle East tensions sent energy prices soaring as oil surged above $95 per barrel and diesel cracks hit record highs. Iran struck two tankers in the region and the US retaliated, heightening geopolitical risks. The Strait of Hormuz saw an estimated 17 million barrels of oil flow daily, though estimates vary. The ICE gasoil crack reached $79 per barrel, while the diesel crack in the US surpassed $100 per barrel.
Tight supplies in diesel and refined products are expected to persist through the winter months. Global refining capacity is stretched thin due to disruptions in Middle East and Russian exports. US crude oil inventories fell by 2.6 million barrels last week, while refined product inventories showed mixed trends. Higher energy costs could reignite inflation concerns and delay potential rate cuts by the Federal Reserve.
Gold prices dropped as oil prices climbed, as investors reassessed the inflation outlook and US fiscal situation. Soybean futures hit a multi-year high due to supportive biofuel policies and strong Chinese demand, but weather concerns in the US Midwest could dampen yields.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
