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Brent crude tops $100 as two chokepoints tighten
OilPrice.com··27 Jul
Brent crude rose past $100 per barrel this week after reports of Houthi strikes on two Saudi tankers in the Bab el-Mandeb Strait. Ukrainian drone strikes on Russia's Novorossiya port also forced Kazakhstan to suspend most of its oil exports through the Caspian Pipeline System. Global refining margins hit an all-time high as fuel markets remained tight.
Prism
What It Means For You
- Higher fuel prices from these disruptions can raise transport and household energy costs globally.
- The World Bank cut its global growth forecast, signalling wider economic consequences from tight energy supply.
- India's fuel import costs are directly affected by the same chokepoint disruptions described here.
What's Happening
- Brent crude topped $100 per barrel this week after Houthi strikes on Saudi tankers.
- Ukrainian drone strikes on Russia's Novorossiysk port forced Kazakhstan to suspend most oil exports.
- Global refining margins hit an all-time high as fuel markets remained tight.
From Glut Warnings to Two Blocked Chokepoints
- Analysts had warned of a looming oil glut less than a month ago during a brief ceasefire.
- Global crude demand fell nearly 5 percent in the second quarter, IEA data showed.
- The World Bank now expects global growth of just 1.3 percent this year, down from 2.9 percent.
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