Brent settled $109.86 on Friday, the highest settle since 19 May. The markets are shifting focus now to inflation impact. Evidenced by last week’s CPI and PPI beats in the US. Higher for longer expectations on both energy and interest rates are bedding in. Crude tightness has already transmitted downstream into a very constrained refining utilisation picture and the higher prices we see across the product stack for distillates and petroleum around the world. The next element now biting in, is shipping rates.
Brent Oil Prices Face Higher-for-Longer Risk as Iran War Drags On
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In this report: What a barrel costs once it has been moved, what the Brent and WTI curves are pricing, Hormuz flows, and positioning.