#energy-price-crisis

#energy-price-crisis

Roughly 20 million barrels per day of oil moved through Hormuz in 2024, equivalent to about one-fifth of global petroleum liquids consumption. When that waterway closed, oil prices spiked to $126 per barrel in what the U.S. Energy Information Administration has described as the largest supply disruption in global oil market history.

Amazon is offering fuel savings for Prime members on Fridays - up to 20 cents per gallon - through May 29, aiming to attract cost-conscious shoppers.

If the war drags on, fuel rationing could be a possibility, but first we would issue a recommendation to conserve fuel and prioritise public transport.

China's stockpiling surged in 2025 due to relatively low oil prices tied to softer demand, rising geopolitical risks, and a new domestic energy law requiring more reserves.

Traders are simultaneously pricing in two contradictory scenarios: continued political de-escalation on one hand, and the possibility of renewed escalation on the other. This fragile balance leaves the market vulnerable to sudden movements, especially given oil prices' high sensitivity to geopolitical developments in the Middle East.

The IEA sees global oil demand falling by 80,000 barrels per day this year, compared with a projected year-on-year rise of 640,000 bpd in its previous monthly report.

The country is at risk of 'stagflation' - where slow economic growth is combined with rising inflation - as the energy crunch brought about by the war in the Middle East hits.

Shipping costs have increased by more than 10 percent in the past month due to the US-Israel war on Iran. The 60-day waiver for the Jones Act aimed to lower energy costs but has had little impact on oil prices, which continue to rise amid the ongoing conflict.

There's no doubt that what's happening now is an order of magnitude bigger - in terms of potential fallout for oil markets - than Russia's invasion of Ukraine. The global benchmark Brent crude is trading around $88 Friday morning, up roughly $16 since military strikes against Iran began.

The war in the Middle East is exposing how dependent the world is on a handful of strategic chokepoints. The Strait of Hormuz a narrow waterway in the Gulf is closed. The longer this goes on, the faster the global energy map could be reshaped.