Analysis: U.S. Oil Futures Break Above $85 for First Time in Nearly Two Years, Global Energy "Artery" Disrupted

Odaily News U.S. crude oil futures have broken above $85 per barrel for the first time in nearly two years, as the war in the Middle East has triggered severe turmoil in the energy market, with shipping through the Strait of Hormuz nearly at a complete standstill. With no signs of the conflict easing, Goldman Sachs warns that if supply disruptions persist, there is a risk of oil prices breaking above $100; European diesel futures are trending towards a weekly gain of over 50%; central banks are also expressing unease about the potential resurgence of inflation. Qatar's energy minister even warned that oil prices could touch $150. Facing the difficulties importers have in obtaining crude oil, the U.S. Treasury Department's Office of Foreign Assets Control issued a short-term exemption allowing India to purchase Russian crude. As the expanding conflict restricts Middle Eastern supply, Saudi Arabia has raised the price of its main crude grades sold to Asia in April by the largest margin since August 2022. Riyadh is also moving millions of barrels of crude to its Red Sea ports to bypass the Strait of Hormuz. (Jin10)