Oil Market's Glut Narrative Just Blew Up

AI Summary

Oil tanker attacks by Yemen's Houthis in the Red Sea and Bab el-Mandeb Strait have disrupted two global oil chokepoints, driving Brent crude prices above $100 per barrel amid increased regional tensions and fears of a global recession.

Less than a month ago, analysts were warning of a looming glut of crude oil as tanker traffic via the Strait of Hormuz began to recover amid a U.S.-Iran ceasefire. Within days of these warnings, the ceasefire was a painful memory, missiles were flying again, and now Yemen’s Houthis are striking tankers in the Red Sea, which makes two blocked oil chokepoints and a very real danger of a global recession. Brent crude this week topped $100 per barrel on reports that the Houthis had struck two Saudi tankers in the Bab el-Mandeb Strait, which Saudi…