Oil closes in on $100 as renewed supply crunch looms
Traders warn that ‘something has to break’ amid attacks on shipping and eroding inventories
Source: Financial Times
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DW NOTE
The Strait of Hormuz has been effectively closed since late August — six ships transiting versus the normal eighty-five per day. Brent is at $96, up 45% year-over-year, yet still somehow four dollars shy of $100. What has to break is the pretence that a market can absorb the loss of 17 million barrels per day of chokepoint capacity without rationing by price.