Israel and terrorists The war between Hamas is deepening. This war is not likely to end soon. In such a scenario, is it likely that the current crisis in West Asia, 50 years after the Arab oil embargo of 1973, could disrupt global oil supplies and increase prices? Experts say that this war is expected to increase crude oil prices. Its impact will be seen all over the world. However, experts say that there is no possibility of a big increase in oil prices and long queues at gas pumps. Let us tell you that on October 6, the day of the attack by Hamas terrorists, global oil benchmark Brent crude was at $85 per barrel, which was trading above $91 per barrel on Thursday.
If this happens, prices may increase.
Andrew Lipov, president of Lipov Oil Associates, said continued price increases would actually cause supply disruptions. If an Israeli military strike damages Iran’s oil infrastructure, global prices could rise. Even if this does not happen, the closure of the Strait of Hormuz in the south of Iran could have an impact on the oil market as most of the world’s supply is through waterways. Until that happens, the oil market will be watching events in West Asia like everyone else, Lipov said. Oil prices have soared as high as $96 after the attack, due to price volatility.
Different opinions of experts
The head of the International Energy Agency (IEA) said that the war between Israel and Hamas is certainly not good news for oil markets after Saudi Arabia and Russia expected to cut oil production and strong demand from China. Is. Fateh Birol, executive director of the Paris-based IEA, told The Associated Press that markets would remain volatile and the conflict could push oil prices higher, which would certainly be bad news for inflation. He said that developing countries that import oil and other fuels will be the most affected by higher prices.
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