Jakarta, CNBC Indonesia \u2014 The global oil market is once again in\nturmoil. In Thursday morning trading at 10.10 WIB, oil prices continued\ntheir sharp rally amid deepening tensions in the Strait of Hormuz.<\/p>\n
According to Refinitiv, Brent crude stood at US$103.93 per barrel, up\nfrom the previous close of US$101.91. Meanwhile, West Texas Intermediate\n(WTI) strengthened to US$95.05 per barrel, from US$92.96.<\/p>\n
This rise follows a more than 3% surge in prices the previous day.\nBrent closed Wednesday up US$1.85 or 1.82%, while WTI added US$1.91 or\n2.05%. This indicates that the market is pricing in a significant\ngeopolitical risk premium into energy prices. In less than a week, Brent\nhas risen from US$90.38 on 17 April to nearly US$104 this morning.<\/p>\n
The root of the market\u2019s anxiety lies in the Strait of Hormuz, the\nnarrow waterway that has long been the lifeline of global oil trade.<\/p>\n
According to Reuters, Iran claims to have seized two container ships\npassing without permission. At the same time, tanker traffic in the area\nremains minimal as shipping companies deem the security situation too\ndangerous. When ships avoid the route, global supply is disrupted even\nif oil wells continue pumping.<\/p>\n
The market also interprets that an extension of the ceasefire does\nnot automatically mean oil exports will recover. During the ongoing war,\nexports from Middle Eastern Gulf producers have plummeted sharply,\ntriggering the largest supply disruptions in modern history according to\nseveral market participants. Thus, even if bullets pause temporarily,\nthe flow of barrels may not return to normal.<\/p>\n
President Donald Trump previously extended the conflict pause after\nplans for a second round of peace talks with Iran in Pakistan failed to\nmaterialise. Washington states that the ceasefire remains in effect\nuntil Iranian leaders present a comprehensive proposal to end\nhostilities with the US and Israel.<\/p>\n
While the threat of direct attacks is deferred, the risk of\ndistribution disruptions remains real. The US military continues to\nmaintain a naval blockade against Iran during the conflict pause. On the\nother hand, Tehran appears comfortable exerting its influence over the\nworld\u2019s most critical shipping lane.<\/p>\n
Rapid Energy President Bob McNally told CNBC International that\nIran\u2019s leadership may be divided but is still functioning. In his view,\nTehran feels it holds a stronger bargaining position and is prepared to\nhold out for months while waiting for oil prices to rise higher and\nglobal stock markets to weaken. Such assessments reinforce the\nperception that the crisis is not near its end.<\/p>\n
Looking at the price charts, market sentiment is shifting rapidly.\nBrent was at US$98.48 on 21 April, rising to US$101.91 the next day,\nthen breaking through US$103.93 this morning. WTI moved from US$92.13 to\nUS$92.96 then to US$95.05. This consecutive rise illustrates a market\nbeginning to accept the possibility of supply disruptions lasting longer\nthan initial estimates.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/oil-prices-soar-again-brent-surpasses-us-103-1777049511", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }