Divergence between benchmarks reflects WTI's suppression by a 6.2-million-barrel US inventory build and emergency releases, while Brent fully captures the severe international geopolitical risk premium.
Global oil prices sharply reversed their recent pullback on Tuesday, driven by a violent resurgence of strikes on United Arab Emirates export facilities that swiftly extinguished market optimism over a partial reopening of the Strait of Hormuz.
Some of the alternative ports have faced direct security threats, while congestion is mounting at Indian gateways and in Sri Lanka, where Port of Colombo is reportedly limiting Gulf-bound volumes.