Oil Prices Today: There has been a sharp rise in the prices of crude oil once again. For the first time since May, the price of Brent crude oil crossed $ 110 per barrel. Due to increasing tension in the Middle East and Russia-Ukraine war, the fear of oil supply being affected is increasing. For this reason, the prices of crude oil are increasing in the market. So far this year, crude oil has become more expensive by more than 70%.
Why did crude oil catch fire?
Hopes of oil supply returning to normal soon are weakening. Brent crude rose by 3.7% on Friday. There is a growing concern in the market that due to the conflict related to the Middle East and Russia, it may be difficult for the world to get the supply of oil and fuel made from it as needed. Missile and drone attacks by Iran-backed Houthi rebels are continuing on Saudi Arabia. On the other hand, Russia and Ukraine are targeting each other’s energy bases. Due to this, the concern regarding oil supply has increased further.
Russian diesel also stuck in trouble
Lawmakers in the US introduced a bill on Friday that aims to block President Donald Trump’s deal to release several hundred million barrels of diesel from Russia. The reason behind this step is said to be an attempt to stop Russia from raising more money for the war. If the supply of Russian diesel does not come in the global market, then the refineries of other countries may have to process more crude oil to meet the demand.
Trump has again said that Russia will move ahead with the plan to release diesel. However, there remains uncertainty regarding this deal. After the recent attack on Russia’s Ryazan Oil Refinery, work there had to be stopped. According to Reuters report, the ongoing tension around the Black Sea has also increased supply concerns.
Big rise in diesel prices too
Along with crude oil, the prices of fuel made from it are also increasing rapidly. Diesel futures prices in Europe have more than doubled this year. There are indications of supply shortage in the physical market also.
What can increase the tension further?
The market is now eyeing the situation in the Persian Gulf. There is also a possibility of increasing tension between America and Iran. If the conflict escalates and oil supply is affected, crude oil prices may remain under pressure.
Source: ndtv.in
