Institution: Despite the Hormuz crisis, oil market buffer mechanisms have still restrained price increases
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```htmlFxPro analyst Alex Kuptsikevich stated that despite the supply shocks deepening due to the near closure of the Strait of Hormuz, crude oil futures have not risen further. However, a prolonged blockade could pave the way for a larger increase. "The price of Brent crude oil at around $105 per barrel seems too low," said the chief market analyst. "Moreover, there is currently almost no difference between futures and spot prices, while in early April, the price gap exceeded $30." Kuptsikevich noted that so far, the market has relied on several buffer mechanisms, including massive global inventories, stronger US exports, and alternative shipping arrangements by Gulf producers. "Nevertheless, the oil shortage caused by the closure of the Strait of Hormuz is laying the foundation for future price increases," he said. "Time is on the side of Brent crude oil bulls."```
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