International Crude Oil Prices Rise, Shipping Through the Strait of Hormuz Drops to Three-Week Low
On July 18, international crude oil prices continued to rise, with Brent crude reaching $86.75 and WTI crude rising to $82.33, after both had previously dipped to around $70. Data released by the international market service provider Kpler on July 17 indicated that shipping activity through the Strait of Hormuz weakened further on July 16, with the number of vessels passing through the strait dropping to 8, the lowest level in nearly three weeks. The data showed that of the 8 vessels that passed through the Strait of Hormuz, 7 chose to navigate through the northern Iranian side, reflecting shipping companies' reassessment of the regional security situation, leading to a further concentration of vessel traffic in this route. Meanwhile, crude oil futures recorded double-digit gains this week. The Houthi movement in Yemen may take action to block shipping in the Red Sea, escalating tensions. Barclays analyst Amarpreet Singh pointed out that inventories are at their lowest levels in recent years, and the situation around the Strait of Hormuz is heating up again, posing upward risks to energy prices, while market vigilance regarding inventory impacts remains insufficient.
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