Crude oil prices continued their upward momentum into Tuesday, brushing aside data suggesting oil flows through the Strait of Hormuz have recovered more strongly than anticipated since early September.
Brent crude was trading at $107.37 per barrel at the time of reporting, while West Texas Intermediate was changing hands at $94.31 per barrel, reflecting a notably wide spread between the two benchmarks.
The growing gap between Brent and WTI has been largely attributed to speculation surrounding a potential United States ban on diesel fuel exports, which has added a distinct premium to the international marker.
Commodity intelligence firm Kpler reported Monday that it had estimated daily oil flows out of the Strait of Hormuz at 12.8 million barrels, a figure that significantly exceeded expectations held by most market observers.
The Kpler estimate stands in contrast to its own regular tanker tracking data, which has consistently indicated that tanker traffic through the critical waterway remains severely disrupted.
The discrepancy arises because standard tanker tracking does not account for vessels operating in so-called dark mode, nor does it capture ship-to-ship transfer activity, both of which have become increasingly prevalent in the region.
Saudi Arabia has turned to ship-to-ship transfers as a workaround for moving its crude oil to market, following a series of damaging strikes by Yemeni Houthi forces on key energy infrastructure.
Those Houthi attacks targeted the Saudi East-West pipeline as well as the port of Yanbu on the Red Sea, forcing the kingdom to adapt its crude export logistics under significant operational pressure.
The resilience of oil prices in the face of improved Hormuz flow data underscores how deeply geopolitical risk premiums have become embedded in global crude markets throughout this period of regional instability.
Traders and analysts will be watching closely in the coming sessions to see whether further confirmation of recovering Hormuz volumes can begin to erode the current price floor, or whether supply-side concerns and export restriction fears continue to dominate sentiment.
