Oil prices rose on Thursday as fears escalated over the continued closure of the Strait of Hormuz and the impact of the war between the United States and Iran on energy flows from the Middle East, compounded by limited global supplies.
اضافة اعلان
By 09:15 Moscow time, Brent crude futures rose by $2.85 (3.5%) to reach $84.25 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude rose by $2.99 (3.7%) to record $77.65 per barrel.
Key Supply Disruptions:
Iraq: Officials told Reuters that Iraq, OPEC's second-largest crude producer, has cut production by approximately 1.5 million barrels per day due to a shortage of storage facilities and the disruption of a major export route.
Qatar: The Gulf’s largest producer of Liquified Natural Gas (LNG) declared force majeure on its gas exports on Wednesday. Sources indicate that restoring normal production levels could take at least one month.
The Strait of Hormuz: Shipping traffic through the strait—a vital artery for nearly one-fifth of global energy consumption—has remained almost entirely halted for the fifth consecutive day due to the war on Iran.
Market Analysis:
JPMorgan stated in a client note that while Iran has not targeted most critical energy infrastructure, it has kept shipping risks at extremely high levels. The bank estimates that approximately 329 oil tankers are currently stranded in the Gulf.
The bank added that the storage capacities of the Gulf Cooperation Council (GCC) countries, combined with current energy prices, may limit the duration of the U.S. military campaign.
Agencies
