The market has been entirely too complacent given that we are one security incident away from a war, say some analysts. A tanker capable of carrying 1 million barrels of crude, was damaged on Friday near the Saudi port of Jeddah after being hit by suspected missiles, Iranian state media said. WTI Crude is $54.40; Brent is $59.85 this morning.
Despite the recent increase in supply disruptions, the EIA said Tuesday they expect downward oil price pressure to emerge in the coming months as global oil inventories rise during the first half of 2020. WTI Crude is $52.99; Brent is $58.75 this morning.
Recent U.S. sanctions on Chinese tanker companies have added fuel to that fire and should support even higher rates as long as these disruptions last. One ship booked to sail from the Gulf of Mexico to Asia last week cost more than $13 million, say sources. WTI Crude is $53.19; Brent is $58.80 this morning.
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