Market prepares for oil price jump to $100 per barrel – FT

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The blockade of the Strait of Hormuz and overflowing storage tanks have caused a shortage of raw materials. Analysts predict a historic rise in oil and fuel prices.

Global energy markets are on the verge of a major crisis due to the virtual halt of oil exports from the Persian Gulf. According to the Financial Times, the escalation of the conflict between Israel, the US, and Iran has led to tankers practically ceasing to pass through the Strait of Hormuz. This route is critically important for the global economy, as it supplies about 20% of the total global volume of fuel. This is reported by UNN.

Details

Due to the impossibility of safely exporting raw materials, key players in the region – Saudi Arabia, the UAE, Kuwait, and Iraq – have begun to limit production or completely stop the operation of individual fields.

Iran closed passage for ships through the Strait of Hormuz - Media28.02.26, 19:23 • [views_13003]

The main problem has been the critical overfilling of ground oil storage tanks. Since logistics chains are broken, the extracted raw materials remain within the producing countries, forcing companies to mothball facilities.

Analysts' forecasts and historical price increases

Experts from Goldman Sachs and Energy Aspects warn of an inevitable surge in energy prices. If the situation around the Strait of Hormuz is not resolved in the near future, prices for oil and petroleum products, including diesel fuel and gasoline, could break historical highs. The dynamics are already alarming: in the past week alone, the price of American WTI crude oil showed a record increase of 36%.

Analysts agree that the $100 per barrel mark is just the beginning if physical supplies from the Middle East do not resume as soon as possible. 

Iraq's oil production fell by 60% due to a shortage of tankers and the blockade of the Strait of Hormuz08.03.26, 19:24 • [views_5886]

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