Oil rises 4% despite the proposal to withdraw the largest reserve stock in history
Oil prices rose by more than 4% on Wednesday as fears of Supply disruption due to new attacks on ships in the Strait of Hormuz, while the International Energy Agency recommended pumping a record amount of strategic oil reserves to calm market fears. Brent crude futures rose by $3.88, or 4.4%, to reach $91.68 per barrel by 17:30 GMT, and the price of US West Texas Intermediate crude rose by $3.38, or 4.1%, to reach $86.83 per barrel. On Wednesday, companies specializing in maritime security and risk management announced that three more ships had been hit by missiles in Strait of Hormuz. This brings the number of ships attacked in the region to at least 14 since the start of the conflict with Iran. Shipping traffic in the narrow strait has been almost completely halted since the United States and Israel began their raids on Iran on February 28, blocking the export of about a fifth of the world’s oil supplies, and sending global oil prices to record levels not seen since 2022. Meanwhile, the International Energy Agency recommended pumping 400 million barrels of oil, the largest such step in the agency’s history, in an attempt to rein in Energy prices have risen by more than 25% since the start of the US-Israeli war with Iran. The agency explained that the time frame for pumping will be determined in due course. The proposed volume is more than double the amount pumped in 2022, amounting to 182 million barrels, following the Russian invasion of Ukraine, but analysts believe that it is ultimately insufficient to compensate for the shortage in supplies resulting from a long-term war in the Middle East.
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