a few seconds agoOil reaches over $100 per barrel, G7 discusses use of strategic reserves
Periskopi(4 months ago)
(4 months ago)International oil prices have passed the threshold of $100 per barrel, rising by over 25% within a few days, while global markets respond to the escalation of the conflict in the Middle East and fears of cutting supply. According to Reuters reports, this is the strongest price hike since the crisis. [...]
Global reference oil Brant curde oil has increased to over $108 16 per barrel, while American oil West Texas Intermediate has exceeded $1 105 per barrel, as tensions in the Gulf region have increased the risk of global supply.
Markets are especially sensitive because of the situation around Hormuz Bay, a maritime corridor from which exceeds about 20% of the world's oil supply. Any disruptions in the area could significantly reduce the offer on global markets. Meanwhile, G7 countries are considering a co-ordinated market relationship of strategic oil reserves, in co-operation with the International Energy Agency, to curb price hikes and stabilise the market. According to reports, some member states have supported a scenario to release 300 to 400 million barrels of oil from emergency reserves if the situation deteriorates.
However, International Energy Agency Executive Director Fatih Birol has now declared that all options are on the table, but at the moment there is no decision on a collective intervention”, stressing that the global oil market still has enough supplies.
Analysts warn that if the conflict in the Gulf region continues and oil transport remains limited, prices could stay above $100 per barrel for an extended period, increasing inflationary pressure on the global economy.
