Increase in oil prices through the conflict in the Middle East. Is a crisis await us?
The conflict in the Middle East threatens to increase oil prices. Attacks on Iranian objects increase the risk of disturbances in the supply of raw material.
Increasing tension in the Middle East, associated with Israeli attacks on Iranian energy facilities, raises concerns about disturbances in oil supply.
“Israeli attacks on Iranian energy facilities can cause a further increase in crude oil prices. Experts are afraid of disturbances in the Middle East supplies, which can affect global markets,” writes Money.pl, citing information from Bloomberg.
The result of Middle Eastern conflict is the increase in oil prices, as the website notes – the largest in three years. Last Friday, June 13, at the end of the session for the WTI barrel, you had to pay $ 72.98, or over 7 percent. more than the day before. Experts emphasize that each subsequent hit in oil infrastructure may deepen the crisis and increase the pressure on the global fuel market.
Possible scenarios for the oil market
Among the analysts, there is speculation that the possible closing of the Strategic Strait of Ormuz could raise oil prices up to $ 130 per barrel. Although some evaluate these forecasts as exaggerated, the real risk of a further increase in oil prices remains valid. In the face of the threat, President Donald Trump may appeal to OPEC+ to increased production. However, Iran, as one of the largest producers – with daily production of 3.4 million barrels – is difficult to replace, which limits the maneuvers of this organization.
Oil prices – market reactions and possible activities
Despite the escalation of the conflict, so far the main oil objects have not been directly attacked, which provides markets with temporary stability. However, each subsequent impact, especially with the participation of Iran’s allies, such as Huti, can increase the risk bonus and draw oil prices even higher.
“The International Energy Agency ensures that global oil markets are well stocked, and if necessary it is ready to reach for strategic reserves,” writes the website.
He emphasizes that the appeal of President Trump for de -escation and peace between Iran and Israel may prove to be crucial to stabilize oil prices on global markets.
