Oil prices stay near $110 despite historic 14 million barrel supply disruption
Updated
Updated · CNN · May 1
Oil prices stay near $110 despite historic 14 million barrel supply disruption
5 articles · Updated · CNN · May 1
Gasoline is about $4.39 a gallon after Iran shut the Strait of Hormuz, while analysts say prices should have reached $150-$200.
Stored crude, strategic reserve releases, looser sanctions and a 4.3 million barrel-a-day demand drop have cushioned the shock, while traders bet President Donald Trump will end the war quickly.
US crude inventories fell 6.2 million barrels last week, buffers are shrinking, and shortages in jet fuel, plastics feedstocks and other fuels could push prices higher within months.
With global oil supply slashed by 14 million barrels per day, why have prices stayed below past crisis peaks—and how long can this last?
How will the combined oil, gas, and fertilizer shortages reshape global energy and food security if the Strait of Hormuz remains closed for months?