The war between Iran and America has again become intense. Neither of them is ready to accept the other’s conditions. Due to which the difficulties of shipment through the Strait of Hormuz have increased once again. This is the reason why the price of crude oil has crossed $90 per barrel. On Monday, an increase of more than 3 percent was seen in the prices of crude oil. Whereas last week the price of crude oil had increased by about 16 percent. According to experts, there may be fluctuations in the prices of crude oil in the coming days. Also, due to increase in crude oil prices, an increase in inflation figures may be seen in the world. Let us also tell you what the prices of crude oil have become…
Increase in crude oil prices
Due to increased attacks by America and Iran in the Middle East, an increase of 3 percent was seen in oil prices on Monday. The price of Brent crude oil of Gulf countries crossed $ 90 per barrel. The price of Brent crude futures rose $2.69, or 3.05 percent, to $90.79, the highest level since June 11. Last week it had increased by 15.9 percent, which was the biggest weekly increase since April. This increase continued this week also. US West Texas Intermediate (WTI) crude rose $2.19, or 2.65 percent, to $84.68 a barrel, its highest level since June 12. Front-month prices rose 15.5 percent last week, the biggest weekly gain since the beginning of March.
Why did crude oil prices increase?
Tensions escalated in the Middle East over the weekend as the US launched strikes against Iran for the ninth consecutive night, while US allies Kuwait and Bahrain reported more attacks by Iran. In recent times, both sides have targeted shipping traffic. The US says it is enforcing a naval blockade of Iranian ports, while Iran says it targets ships that violate its rules for passing through the Strait of Hormuz. One-fifth of the world’s total oil trade passes through this strait. The United Kingdom Maritime Trade Operations Agency said on Monday morning that a ship had caught fire northwest of Qumjar, Oman.
5 year low inventory
Barclays analyst Amarpreet Singh said in a note that in the coming days and weeks it will become clear at what level oil exports from the region can remain under the new double blockade. Given the current situation, we think the oil markets are still very uncertain about the potential impact on inventories. Whereas compared to the beginning of the war, the inventory now is at its lowest level in the last five years. According to LSEG data, four ships traveled through the Strait of Hormuz on Sunday, while eight ships did so the previous day. Data shows that at least three oil product tankers and one very large crude carrier have entered the Strait to load oil since Friday.
No change since 55 days
The prices of petrol and diesel have remained stable since May 25. At that time, government oil marketing companies (OMCs) had increased the price of petrol by Rs 2.61 per liter and diesel by Rs 2.71 per liter. The price of petrol in Delhi remains above Rs 100 per liter at Rs 102.12, while diesel is being sold at Rs 95.20 per liter.
Even in Mumbai, petrol prices remain above the level of Rs 110. Here petrol is being sold at Rs 111.21 per liter and diesel at Rs 97.83 per liter. Petrol prices in other big cities like Bengaluru, Hyderabad and Kolkata are also above Rs 110 per liter. Diesel prices in these cities are less than Rs 100, except Hyderabad, where the price of diesel is Rs 103.82 per litre.
