At 11:38 MSK, Brent crude was trading above $102 per barrel. The rise occurred amid the continued closure of the Strait of Hormuz and Saudi Aramco's warnings of further escalating tension in the oil market.
What happened with Brent
Brent rose above the $102 per barrel mark. Brent is the benchmark crude oil grade used as a reference for pricing a significant portion of global supplies. The move came shortly after comments from the head of Saudi Aramco.
What Saudi Aramco said
At 11:13 MSK, the head of Saudi Aramco stated that tension in the oil market will continue to escalate until the Strait of Hormuz reopens. The second point concerns strategic reserves. In his assessment, releasing additional volumes of oil from state stockpiles can provide the market with only temporary relief.
Why the Strait of Hormuz is so important
The Strait of Hormuz is a narrow maritime route at the exit from the Persian Gulf. A significant portion of seaborne oil exports from the region's countries passes through it, including supplies from the largest Persian Gulf producers. While the passage is closed, some oil physically cannot reach buyers via the usual route. That is why the market reacts not only to production volumes but also to the possibility of actually delivering the crude.
Why reserves are not enough
Strategic reserves allow states to temporarily increase the oil supply on the market. But they do not create new production. After the reserves are released, their volume gradually decreases, so this tool can only ease the deficit for a limited period. If the Strait of Hormuz remains closed, the problem with logistics and supplies persists.
What is currently driving oil
In a normal situation, the market watches inventories, demand, production and economic statistics. Right now, the main factor remains news around the Strait of Hormuz. Any report about the route reopening, new restrictions or a change in the situation in the region can trigger a sharp move in Brent and WTI. Because of this, intraday spikes and price gaps between sessions become more likely.
What's next
The main reference point for the market is not tied to a specific date. The key event will be the restoration of movement through the Strait of Hormuz. Until then, oil may remain sensitive to any geopolitical statements and news about supplies.
Have you been watching this oil candle from the sidelines?
In a market like this, a move can start right after a single headline. In prop trading, it is especially important here to know the rules of a specific program in advance. With some prop firms, Brent and WTI may be unavailable; with others, there are restrictions on holding energy instruments overnight or over the weekend. It is better to check this before buying a challenge, not after opening a position.