Oil rises 5% at settlement amid warnings about the $150 scenario
Oil prices rose by about 5% at settlement on Wednesday, amid exacerbating fears of supply disruption due to new attacks on ships in the Strait of Hormuz, while analysts point out that the International Energy Agency’s proposal to release record amounts of Oil reserves are insufficient to allay these fears.
Brent crude futures rose $4.18, or 4.8%, to settle at $91.98 per barrel, while US West Texas Intermediate crude ended the session up $3.80, or 4.6%, at $87.25 per barrel.
Navigation traffic in the narrow Strait of Hormuz almost stopped. Since the United States and Israel began their raids on Iran on February 28, halting the export of about a fifth of global oil supplies and rising Global oil prices reached record levels not seen since 2022.
Meanwhile, member governments of the International Energy Agency agreed, on Wednesday, to release 400 million barrels of strategic oil reserves in an attempt to rein in prices.
The company said "Wood Mackenzie" For consultations in the field of EnergyThe war is currently reducing the supply of oil and petroleum products from the Gulf to the market by about 15 million barrels per day, which could raise crude oil prices to $150 per barrel. Bank said "Morgan Stanley" In a note: "Even a quick fix could mean weeks of turmoil for energy markets".
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