Oil prices have skyrocketed: what are the reasons behind the price hike?
19 March 11:17
Oil prices surged after Iran attacked energy facilities in Saudi Arabia, the UAE, and Qatar in response to an attack on the South Pars gas field. Brent rose by $5 per barrel, and WTI rose by nearly $1, marking a record surge due to geopolitical tensions and threats of supply disruptions.
This was reported by Reuters, as cited by "Komersant Ukrainian".
Oil prices rose
Oil prices rose significantly on Thursday after Iran attacked energy facilities in Saudi Arabia, the UAE, and Qatar in response to an attack on the South Pars gas field. Brent jumped $4.66 to $112.04 per barrel, while WTI rose 96 cents to $97.28 per barrel. Earlier, Brent had risen by more than $5 per barrel.
On Wednesday, Brent closed up 3.8%, while WTI remained virtually unchanged. WTI’s wide discount to Brent is due to releases from U.S. strategic reserves and high transportation costs, while new strikes in the Middle East have supported Brent prices.
Analysts note that precision strikes on oil infrastructure and an escalation of the conflict could lead to prolonged disruptions in oil supplies.
The U.S. Federal Reserve kept interest rates steady, forecasting rising inflation due to the impact of the U.S.-Israel war with Iran.
QatarEnergy reported “significant damage” to its LNG facilities in Ras Laffan due to Iranian missile strikes. Saudi Arabia intercepted four ballistic missiles and repelled a drone attack on a gas facility.
South Pars is the Iranian sector of the world’s largest natural gas field, which Iran shares with Qatar. The attack on the field was carried out by Israel; the U.S. and Qatar did not participate, Donald Trump noted. He added that Israel would not attack Iranian facilities further unless Iran strikes Qatar, and the U.S. would respond to any actions against Doha.
Experts predict continued support for oil prices due to escalating tensions in the Middle East and the lack of signs of a quick reopening of the Strait of Hormuz.
Reuters reported that the Trump administration is considering sending thousands of U.S. troops to ensure the safe passage of oil tankers through the Strait of Hormuz, including air, naval, and potentially ground forces.
Impact on Ukraine
It should be noted that Ukraine’s fuel market is entering a new phase of price increases. Due to the surge in global oil prices and the frenzy in the autogas market, wholesale prices are rising rapidly, and gas station chains have already begun passing these costs on to consumers. Experts warn that diesel prices could quickly approach 85 UAH per liter.
