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Strait of Hormuz disruptions keep pressure on global oil supply chains
Brent traded near $85 a barrel as Bloomberg data indicated shipping through the chokepoint stayed largely disrupted, with UBS saying supply-chain stress remains near pandemic highs.
Shipping transits through the Strait of Hormuz were still largely disrupted on Monday morning, even as Iran and Oman reportedly moved closer to a deal, according to Bloomberg data cited by OilPrice.
OilPrice reports that Brent crude futures traded near $85 a barrel as markets priced in the possibility that reopening the maritime chokepoint could be imminent, but it also noted that global supply-chain stress remains near its highest level since the pandemic.
UBS senior international economist Pierre Lafourcade highlighted the bank's Global Supply Chain Stress Index, showing modest easing in July from June's peak, while disruptions tied to the Hormuz chokepoint continue to strain global shipping networks.
OilPrice said the median reading of UBS's 23-component index fell by 0.4 standard deviation from June, but stayed 0.9 standard deviation above pre-Iran conflict levels, and that even with July data showing some relief, normalization could take months.
Latest closeWTI crude $82.30 ▲5.3%|Brent $87.85 ▲5.2%