It rose further after a sharp rise last week due to the notice of “Pal residents moving south”.
“Production of up to 20 million barrels per day will be halted if Iran intervenes in the war.”
As the possibility of the Israel-Palestine war expanding into a ground war increases, the price of Brent crude oil exceeds $91 per barrel on the 16th (local time).
According to CNN, the price of Brent crude oil futures, the international oil price benchmark, rose to $91.2 per barrel on this day. The closing price on the 13th was $90.89.
The price of West Texas Intermediate (WTI) futures, the benchmark for crude oil prices in the United States, rose from the closing price of $87.68 on the 13th to $87.98 on this day.
International oil prices soared after news broke that the Israeli military had notified 1.1 million residents of the Palestinian Gaza Strip on the 13th to move south within the next 24 hours. On the day, the price of Brent crude oil futures soared 5.7% to $90.89 per barrel, and the WTI futures price surged 5.9% to $87.7 per barrel.
Hiroyuki Kikukawa, CEO of NS Trading, an affiliate of Nissan Securities, said, “Investors are assessing the situation as a large-scale ground attack has not begun even 24 hours after Israel notified residents of northern Gaza to flee to the south.” mentioned.
He continued, “The impact of oil-producing countries has already been reflected in prices to some extent, but if a ground war actually occurs and affects crude oil supply, the price of Brent oil could easily exceed $100 per barrel.”
ANZ Research also predicted that as geopolitical risks increase, the price of Brent crude oil could reach $100 per barrel in the short term. Although Israel or Palestine are not major oil producing countries, if the war expands, risks in the oil market may increase.
ANZ Research said, “If Iran intervenes in the war, production of up to 20 million barrels of crude oil per day could be halted, either directly or due to logistics disruption.”
Stephen Innes, Managing Partner at SPI Asset Management, said, “The ongoing conflict potentially reduces the possibility of normalization between Saudi Arabia and Israel and poses a downside risk to Iranian oil production, leading to a further surge in international oil prices, which will lead to a further surge in global oil prices over time. “It could put further pressure on supply,” he said.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.