Houthi Blockade Threat Sends Middle East Crude Premiums to 6-Week High
CVX sits 30% above its 52-week low of $146.49.
Summary
Middle East crude benchmarks surged to a six-week high after Yemen's Houthis threatened a naval blockade on Saudi Arabia, risking disruption to over 3 million barrels per day of Saudi crude shipments via the Red Sea. Dubai and Murban premiums jumped nearly $3 a barrel, while Indian refiners cancelled Iraqi oil liftings due to escalating Strait of Hormuz risks. Goldman Sachs warned Brent could top $120/bbl in Q4 if Hormuz flows remain disrupted. Chevron is also shutting in its Petronius facility in the Gulf of Mexico ahead of a tropical depression, adding to supply concerns. This follows weeks of warnings from Chevron's CEO about imminent oil shortages and the Strait of Hormuz closure, now materializing into physical supply disruptions and higher prices.
At the time of this announcement, CVX was trading at $190.00 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $377.8B. The 52-week trading range was $146.49 to $214.71. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.