Energy Aspects founder Amrita Sen says crude oil is underpriced, arguing that some physical crude prices should be closer to $150 per barrel amid escalating Middle East hostilities and disruptions to shipping.
She said oil futures have failed to reflect infrastructure damage, attacks on energy facilities, and growing risks to maritime transport. The crisis has tied up tankers in ship-to-ship transfers outside the Strait of Hormuz, pushing freight rates to record highs and reducing vessel availability.
Vitol CEO Russell Hardy also warned that inefficient shipping operations in the region have turned recovering Middle East crude supply into a shipping crisis. Meanwhile, Brent crude remained above $100 per barrel on October 9 and was heading for a weekly gain as increased tanker attacks threatened to disrupt the recovery in regional oil supplies.