War in the Middle East: oil prices have risen significantly
1 March 16:14
Brent crude oil prices jumped 10% to around $80 per barrel on the over-the-counter market on Sunday, and analysts predict that prices could rise to $100 after US and Israeli strikes on Iran dragged the Middle East into a new war.
This was reported by Reuters, citing oil traders, according to "Komersant Ukrainian".
According to trade sources, most tanker owners, major oil companies, and trading houses have suspended shipments of crude oil, fuel, and liquefied natural gas through the Strait of Hormuz after Tehran warned ships of the dangers of passing through this waterway.
More than 20% of the world’s oil is transported through the Strait of Hormuz.
“We expect prices to open (after the weekend) at a level much closer to $100 per barrel, and possibly exceed that level if we see a prolonged closure of the strait,” Parmar said.
Middle East leaders have warned Washington that a war with Iran could cause oil prices to jump to over $100 per barrel, said RBC analyst Helima Croft.
Barclays analysts also said prices could reach $100.
The OPEC group of oil-producing countries agreed on Sunday to increase production by 206,000 barrels per day (bpd) from April, a modest increase of less than 0.2% of global demand.
Although some alternative infrastructure can be used to bypass the Strait of Hormuz, the net effect of its closure will be a loss of 8 to 10 million barrels per day.
Rystad expects prices to rise by $20 to around $92 per barrel after trading opens.
The Iranian crisis has also prompted Asian governments and oil refiners to assess oil reserves, alternative transport routes, and sources of supply.
