Analysis: U.S. Oil Futures Break Through $85 for the First Time in Nearly Two Years, Global Energy "Artery" Cut Off

Odaily News: U.S. crude oil futures have broken through $85 per barrel for the first time in nearly two years, as the war in the Middle East has triggered severe turbulence in the energy market, with shipping in the Strait of Hormuz nearly coming to a complete halt. With no signs of the conflict easing, Goldman Sachs warns that if supply disruptions persist, there is a risk of oil prices breaking through $100; European diesel futures are trending towards a weekly gain of over 50%; central banks worldwide are also expressing unease about the potential resurgence of inflation. Qatar's energy minister has even warned that oil prices could reach $150. Facing difficulties for importers in obtaining crude oil, the U.S. Department of the Treasury'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 grade sold to Asia in April by the largest margin since August 2022. Riyadh is also diverting millions of barrels of crude to its Red Sea ports to bypass the Strait of Hormuz. (Jin10)