Brent crude oil prices are approaching $100 per barrel, reaching their highest point since late July. Goldman Sachs analysts warn that prices could climb to $120 if shipping attacks in the region intensify and expand.
The current market volatility follows the US decision to abandon diplomatic efforts with Iran in favor of sanctions and a blockade. Recent military actions include US strikes on three Iranian tankers and an attack on a Saudi Aramco facility in Jizan.
Data from Energy Aspects indicates that global oil inventories outside of China have decreased by more than 400 million barrels since the conflict began. Commodity funds are responding to these supply pressures with bullish positions.
In the US, diesel prices have reached record highs, trading at a premium of more than $100 per barrel above crude oil. Analysts suggest this price gap indicates that a significant energy supply crunch is already underway.
