Latest / The Commodities Economy with Fexingo: Oil, Gold, Wheat, and Raw Material Markets
How Brent Is Surging Past WTI on Iran Strait Risk
Lucas and Luna unpack the sharp divergence between Brent and WTI crude as renewed Iran hostilities disrupt shipping through the Strait of Hormuz. Brent crude is up 6 percent over the past five days to 89 dollars and change, while WTI lags near 83 dollars. They explain why Brent carries a growing risk premium tied directly to Middle East shipping flows, while WTI remains insulated by US domestic production. Lucas walks through the mechanics of how insurance rates and tanker availability are driving the spread wider, referencing recent data showing ships are actively avoiding the strait. Luna…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.