Oil Traders Reprice Hormuz Risk as Demand Outlook Deteriorates
September WTI crude oil futures are trading at $81.19 late Thursday, up $4.11, or 5.33%, for the week. With Friday’s session still to come, the final weekly result remains unsettled. The message is clear. Traders spent the week rebuilding the Hormuz premium after last week’s deal optimism fell apart
Source: OilPrice.com
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DW NOTE
The Strait of Hormuz has been effectively closed since February — yet WTI is down 27.5% from yearly highs and still falling. Markets have repriced a supply shock that hasn't ended as a demand problem that has. When a fifth of global oil shipments stops moving and the price drops anyway, that's not geopolitical reassessment — it's demand destruction the statistics haven't caught up to yet.