Brent at 100 euros? The headline the data doesn't support
Brent is trading at 65-75 dollars, not 100 euros. The shipping disruption hits freight more than crude itself. Why is nobody talking about logistics inflation?
English · Original discussion in Spanish · Published
Brent at 100 euros: reality or noise?
Brent crude is trading at around 65-75 dollars per barrel, which works out at roughly 60-70 euros. A long, long way from the 100 euros some take for granted on social media. And yet the narrative that oil is heading back to three digits has taken hold among those pointing to the disruptions to shipping traffic in the Red Sea and the Strait of Hormuz.
The argument has some substance: cuts to key routes push up freight and insurance costs, but the direct impact on the price of a barrel is smaller than antiestéticared. Most crude is diverted, not lost. Those who recall that Brent already brushed 120 dollars in the spring without any alarms going off wonder why the silence is louder now.
The real issue is not oil, but the inflation that is already here. The rise in logistics costs — slower but persistent — is creeping into prices without anyone naming it. Meanwhile, the public debate gets tangled up in headlines that don't match the data. When will we start talking about the true cost of global instability?
Brent crude is trading at around 65-75 dollars per barrel, which works out at roughly 60-70 euros. A long, long way from the 100 euros some take for granted on social media. And yet the narrative that oil is heading back to three digits has taken hold among those pointing to the disruptions to shipping traffic in the Red Sea and the Strait of Hormuz.
The argument has some substance: cuts to key routes push up freight and insurance costs, but the direct impact on the price of a barrel is smaller than antiestéticared. Most crude is diverted, not lost. Those who recall that Brent already brushed 120 dollars in the spring without any alarms going off wonder why the silence is louder now.
The real issue is not oil, but the inflation that is already here. The rise in logistics costs — slower but persistent — is creeping into prices without anyone naming it. Meanwhile, the public debate gets tangled up in headlines that don't match the data. When will we start talking about the true cost of global instability?
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (12 replies).
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