United States Oil Fund LP Up 53% on Supply Shock Cutting 15M BPD, Brent to $119.50
Wood Mackenzie warns that a supply shock has curtailed roughly 15 million barrels per day of Gulf oil exports through the Strait of Hormuz, driving Brent to $119.50 per barrel and jet-fuel crack spreads to $100. United States Oil Fund LP has gained over 53% year-to-date on soaring crude prices.
1. Historic Supply Shock Curtails Gulf Exports
The conflict-driven halt through the Strait of Hormuz removed an estimated 15 million barrels per day from global markets, representing the majority of regional exports and triggering fears of prolonged supply shortages due to potential delays in restarting shut-in wells.
2. Crude Price Surge and Margin Expansion
Brent crude spiked to $119.50 per barrel while jet-fuel and diesel crack spreads in Northwest Europe soared to about $100 and $70 per barrel respectively, prompting analysts to warn that rebalancing demand and supply could push oil past $150 or even $200.
3. Impact on United States Oil Fund LP
United States Oil Fund LP has rallied over 53% year-to-date as investors seek exposure to skyrocketing crude prices, reflecting heightened volatility and sustained concerns over further disruptions in Gulf oil flows.