Oil prices have risen again: the main factors driving the increase
3 April 12:15
Oil prices have risen as traders are concerned about U.S. President Donald Trump’s statements regarding continued attacks on Iran.
This was reported by "Komersant Ukrainian", citing Reuters.
Brent crude oil futures closed $7.87, or 7.78%, higher, reaching $109.03 per barrel. Futures for U.S. West Texas Intermediate crude rose by $11.42, or 11.41%, to $111.54 per barrel, marking the largest absolute price increase since 2020.
Both benchmarks remained below the highs of around $120 per barrel reached earlier during the conflict.
Trump previously stated that military operations against Iran would be intensified, but did not specify a timeline for the cessation of hostilities. He also did not provide any details regarding steps that could lead to the reopening of the Strait of Hormuz.
“If Iran’s oil infrastructure is under threat, then in the event of strikes against it, the resumption of oil flows in the region is likely to be delayed,” said Dennis Kissler, senior vice president of trading at BOK Financial.
The price of WTI crude, which typically trades below Brent, was nearly $3 higher than Brent, as the U.S. contract traded for May delivery, while the Brent contract traded for June delivery. WTI’s premium to the global benchmark was the highest in a year.
What lies ahead for the markets
“The market expects that if the Strait of Hormuz opens in a couple of weeks, this risk premium will immediately decline,” said John Kilduff, a partner at Again Capital.
Dallas Federal Reserve Bank President Lori Logan stated that a quick “resolution of the war” could mean that the economic impact of the fallout might be fairly moderate.
She also emphasized that Brent crude oil prices could average $95 per barrel in the base case and $130 per barrel in the worst-case scenario in the second half of the year, while oil prices could rise to $120–130 per barrel in the near term.
