Oil prices have once again crossed the $100 per barrel mark, just days after reaching their highest level in four years.
The rise in prices is associated with the continuation of the conflict between the United States of America and Israel on the one hand and Iran on the other, which has a strong impact on the global energy market.
The new increase in prices occurred despite the decision of member states of the International Energy Agency to place additional quantities of oil on the market. Those countries unanimously agreed earlier on Wednesday to release a record 400 million barrels from reserves to ease pressure on global supply.
Brent crude oil, the international benchmark, reached around $100 a barrel during the evening, a rise of approximately 8.7 percent in one day.
US benchmark West Texas Intermediate saw an almost identical jump and was trading at around $94.8.
Meanwhile, US President Donald Trump announced the continuation of military operations against Iran, saying he would “finish the job”. In response, Iranian forces have stepped up attacks on economic targets across the region.
The attacks also affected maritime traffic. Several merchant ships were targeted in the area of the Strait of Hormuz, one of the world’s most important routes for transporting oil.
The owner of the Mayuree Naree, registered in Thailand, said three crew members on the vessel were believed to be trapped.
Tensions rose further after Iraq suspended all operations at its oil ports following attacks on two tankers near the coast. At the same time, Bahraini authorities urged residents to stay in their homes following an Iranian attack on fuel tanks in Muharraq province.
According to sources cited by Bloomberg, Oman has moved all vessels from its main oil export terminal to Mina Al Fahal, one of the few ports from which oil from the region can be transported to world markets, for security reasons.
This decision followed a drone attack on one of Oman’s ports.
On Thursday, the price of Brent crude rose by about nine percent to $100.29 a barrel, despite attempts by governments around the world to calm markets and ease fears of a prolonged supply disruption.
Let us remind you that at the beginning of the week the price crossed the three-digit limit for the first time in four years, when at one point it jumped by as much as 29 percent. This was followed by a short-lived decline after Donald Trump issued contradictory statements describing the conflict as almost over.
As prices continued to rise, Iran’s military high command sent a harsh message to Washington.
“Get ready for the price of oil to reach $200 per barrel, because the value of oil depends on the regional security that you have destabilized,” they said from Tehran.
At the same time, the financial markets reacted by falling. Japan’s Nikkei 225 index fell by 1.6 percent, while South Korea’s Kospi recorded a 1.2 percent drop.
The Strait of Hormuz, through which approximately a fifth of the world’s oil and gas tankers normally pass, has been practically closed since the start of the conflict on February 28.
Saudi Arabia’s state-owned oil company Aramco warned that a long-term blockade of the shipping route could have “catastrophic consequences” for the global energy market.
As part of efforts to stabilize prices, the United States announced the release of 172 million barrels from its strategic oil reserves.
US Energy Secretary Chris Wright said distribution will begin next week and the process will take about 120 days.
“Iran has manipulated the energy security of the United States of America and our allies,” Wright said in his statement, writes Bloomberg, as reported by the Guardian and CNN.
Earlier, Donald Trump also confirmed that Washington plans to use strategic oil reserves to ease pressure on the market.
(Vijesti.ba)
