Oil prices climb back above $90
Inflation may be harder to control than the market expects
Shipping through the Strait of Hormuz is starting to deteriorate again.
According to Kpler data, only 7 cargo ships passed through the strait on October 6, the lowest level since July 23. Crude oil transit volumes fell 27% from the previous week's high.
On October 8, Brent crude rose about 4%, closing at $104.28. Currently 90
One detail is worth noting, though: Middle Eastern crude exports have not collapsed in tandem. Some supplies have already been rerouted via the Red Sea and other routes through the Gulf of Oman.
This means the rise in oil prices is not entirely due to an actual reduction in supply. Shipping risks, insurance costs, and geopolitical premiums are also playing a part.
The market had been hoping the Fed would pivot toward easing, but persistently high oil prices could put inflation under renewed pressure.
If energy prices stay high, it will be harder for the Fed to cut interest rates, creating an environment that is not particularly favorable for BTC, gold, or U.S. stocks.
$CL $BTC $ETH
Inflation may be harder to control than the market expects
Shipping through the Strait of Hormuz is starting to deteriorate again.
According to Kpler data, only 7 cargo ships passed through the strait on October 6, the lowest level since July 23. Crude oil transit volumes fell 27% from the previous week's high.
On October 8, Brent crude rose about 4%, closing at $104.28. Currently 90
One detail is worth noting, though: Middle Eastern crude exports have not collapsed in tandem. Some supplies have already been rerouted via the Red Sea and other routes through the Gulf of Oman.
This means the rise in oil prices is not entirely due to an actual reduction in supply. Shipping risks, insurance costs, and geopolitical premiums are also playing a part.
The market had been hoping the Fed would pivot toward easing, but persistently high oil prices could put inflation under renewed pressure.
If energy prices stay high, it will be harder for the Fed to cut interest rates, creating an environment that is not particularly favorable for BTC, gold, or U.S. stocks.
$CL $BTC $ETH