Freight and Insurance Floor

Liquid tanker rates from the Middle East to Asia have spiked 150% in the last 30 days. This explosion in transportation costs has created a $15/bbl 'logistical premium' that is currently decoupled from global demand data.

OPEC Production Discipline

Shut-ins across Iraq, Saudi Arabia, and the UAE totaling over 7 million bpd have decimated the global supply cushion. Analysts expect Brent to remain in the triple digits until a permanent maritime security agreement is signed.