The continued closure of the Strait of Hormuz is creating ever-deeper deficits that will take longer to pull back to normal the longer the situation continues.

Oil prices could top $130-$140 a barrel next month if the strait remains closed and inventory depletion rates remain steady, according to Capital Economics.

Physical crude markets have also firmed again in recent days, offering a reminder of the wider supply tightness that’s hitting the global oil industry.