Mmastodon BusinessEconomy first seen 2 d ago, last 2 d ago, peak #1

Why oil stays near $110 despite ships avoiding the Red Sea

Original: Why is # oil still at🚨$110/bbl? Despite the fact:⚡sig amt of oil IS flowing thru the SoH again,🚨the COST of shipping thi

Oil remains around $110 a barrel even though a significant amount of crude is again flowing through the Strait of Hormuz. Shipping costs are a key factor: analyst R. Johnston estimates an additional risk premium of roughly $30 a barrel for tankers moving through the chokepoint, effectively putting a permanent floor under global oil prices.

Why now: People are debating why oil prices stay elevated despite supply through the Strait of Hormuz recovering, pointing to higher shipping risk costs.

Strait of HormuzR. Johnstonoil market

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Evidence

• Why is # oil still at🚨$110/bbl? Despite the fact:⚡sig amt of oil IS flowing thru the SoH again,🚨the COST of shipping this oil is permanently raising the flr price for oil. Acc to R Johnston... an ~ est of the additional risk prem for shipping oil out of the SoH:🚨~30/bbl. Prior… · KimPerales@toad.social · 5

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