Stories
Crude Oil Prices to Remain High Amid War Risks and Refinery Disruptions
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CNBC TV18•13-10-2026, 09:38
Crude Oil Prices to Remain High Amid War Risks and Refinery Disruptions
- •Crude oil prices are expected to stay elevated due to the Saudi-Houthi conflict, rising shipping costs, and refinery disruptions.
- •Matrix Global CEO Richard Radoglia noted a growing bifurcation between Brent crude at around $105 per barrel and West Texas Intermediate at $92 to $93 per barrel.
- •While Persian Gulf oil flows have recovered to over 95 percent of pre-war levels, shortages of refined products like diesel and higher insurance premiums continue to drive up costs.
- •Implied market volatility has decreased from near 100 percent down to about 48 percent, indicating a calmer market despite persistently high crude prices.
- •Geopolitical risks and potential escalation in hostilities leave oil prices vulnerable to further increases.
Key Questions Answered
Crude oil prices remain elevated due to the Saudi-Houthi conflict, rising shipping costs, and ongoing refinery disruptions, which have created a shortage of refined products like diesel and higher insurance premiums for regional cargoes.
Brent crude is trading at around $105 per barrel, while West Texas Intermediate (WTI) is trading at $92 to $93 per barrel, marking a clear bifurcation in the market driven by shipping costs and geopolitical risks.
Data from shipping-tracking firms Vortexa and Kpler indicate that oil flows through the Persian Gulf have recovered to more than 95 percent of pre-war levels.
