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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InBrent crude prices stabilized at $3.82 per barrel as markets monitor diplomatic efforts in the Strait of Hormuz, with Standard Chartered setting a new price equilibrium at $95. Market tightness is being exacerbated by global supply disruptions of 13.7 million barrels per day and a recent dip in US drilling activity, where oil rigs fell by 3 to 407. While the total US rig count rose to 544, it remains 43 rigs lower than the same period last year, highlighting a cautious recovery in production capacity. Conversely, gas rigs saw an increase of 4 to 129, marking a rise of 22 compared to last year's levels. Traders remain focused on the combination of geopolitical risk premiums and the exhaustion of spare capacity, which continue to underpin high energy prices.