crude oil
The global oil market has once again come to a boil. For the first time since 2022, crude oil prices have crossed $120 per barrel, which has increased serious concerns about supply. US-Iran tension, obstruction in the Strait of Hormuz and stagnation on the nuclear deal have destabilized the market. Experts believe that if the situation does not improve, a further rise in oil prices may be seen.
There has been a sharp rise in the prices of crude oil in the international market, where Brent crude has crossed $ 120 per barrel. This level has been seen for the first time after 2022, due to which the possibility of impact on the global economy and inflation has increased.
Strength gained from Middle East tension
The biggest reason behind this rise is the increasing tension between America and Iran. According to reports, America has taken a tough stance on Iran’s oil exports and there is a deadlock over the Strait of Hormuz. This is the same strategic route through which a major part of the world’s total oil supply passes.
On April 30, Brent crude for June delivery rose by about 1.96% to $ 120 per barrel, while US West Texas Intermediate (WTI) also remained above $ 107. Earlier on Wednesday too, a strong rise was seen in the market, when Brent jumped by about 6% and WTI by 7%.
How will the market be going forward?
Experts believe that if the ban on Iran’s oil exports continues and storage capacity remains limited, the supply situation may worsen. Although the UAE is trying to increase production by separating from OPEC, its effect will not be seen immediately. If we look at the future outlook, many institutions have warned that if there is no progress in US-Iran talks and tensions increase, then crude oil prices may reach $ 150 per barrel. In particular, the prolonged closure of the Strait of Hormuz can prove to be a major blow to the global market, because about 20 million barrels of oil passes through this route every day. In such a situation, disruption in supply can directly push prices up.
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