Oil Prices Hit Highest Since 2022 At More Than $119 A Barrel On Iran War
LONDON, March 9 (Reuters) – Oil prices Oil rose above $119 a barrel on Monday, reaching levels not seen since mid-2022, as some major producers cut supply and fears of prolonged shipping disruptions due to the escalating US-Israeli war gripped the market. Iranian.
Brent crude futures LCOc1 rose $12.77, or 14%, to $105.46 a barrel by 1126 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $12.66, or 14%, to $103.56 a barrel.
Brent had earlier reached $119.50 per barrel in a rocky session; This marked the largest absolute price increase ever in a single day, with WTI reaching $119.48 per barrel.
Brent is up 66% and WTI is up 77% since its last close before the US and Israel launched attacks on February 28.
Monday prices The all-time high for contracts in 2008 was around $147 a barrel, according to LSEG data dating back to the 1980s.
Market Structure Points to Intense Supply Problems
The premium LCOc1-LCOc7 for front-loaded Brent contracts over contracts for delivery six months later rose to a near all-time high of $36 on Monday, according to LSEG data from 2004.
This was well above the previous peak of $23, which occurred in March 2022 during the first weeks of the Russia-Ukraine war.
This premium indicates a market structure known as a pullback, which indicates that traders are seeing intense shortages of available supply.
The Strait of Hormuz, through which approximately one-fifth of the world’s seas pass oil and liquefied natural gas typically pass through, almost completely shut down.
Also increase prices appointment? Mojtaba Khamenei He will replace his father, Ali Khamenei, as Iran’s supreme leader, signaling that hard-liners will remain firmly in charge in Tehran a week after the conflict with the United States and Israel.
War could leave consumers and businesses around the world facing weeks or months of higher fuel prices prices Even as the conflict ends quickly, suppliers grapple with damaged facilities, disrupted logistics and increased risks to shipping.
US gasoline contracts RBc1 rose to the highest level since 2022, at around $3.22 per gallon, as US President Donald Trump told US consumers the impact on living costs would be limited ahead of midterm elections in November.
“Alternatives such as resorting to strategic methods are limited oil “These reserves are a drop in the ocean, however, compared to the potential magnitude of the supply disruption that could occur if the Strait remains closed for longer,” said UBS analyst Giovanni Staunovo.
US Senate Democratic Leader Chuck Schumer calls for Trump to be released strategic oil reservesand a French government source said on Monday that the Group of Seven countries would also discuss the issue.
Sources Say Saudi Aramco Started Cutting Production
Saudi Aramco started cuts off its output in both oilSources said there are areas. Analysts stated last week that they expected OPEC heavyweights, including the United Arab Emirates, to be forced to cut their production in a short time. sold out related to oil store
Iraq oil Production from the main south oilThere are those who take down 70%Sources said crude oil storage has reached maximum capacity.
Kuwait Petroleum Company also started operating cutting oil output It declared force majeure on shipments on Saturday but did not say how much production it would halt.
Saudi Aramco, which was able to divert some of the flow through the Red Sea port of Yanbu, offered more than 4 million barrels of Saudi crude. rare tenders To counteract the closure of Hormuz.
Qatar, the giant LNG exporter in the gas markets, had already stopped production following attacks on important infrastructures.
A. there was a fire In Fujairah, UAE oil an industrial zone was formed due to falling debris; No injuries were reported.
Refinery outages add to fuel supply disruptions as Bahrain’s BAPCO announces force majeure following the recent attack on the refinery complex. Saudi Arabia has already closed the largest oil refinery.
(Additional reporting by Yuka Obayashi, Sudarshan Varadhan, Rae Wee, Tim Gardner; Editing by Sam Holmes, Jamie Freed and Muralikumar Anantharaman)
