Oil above 100: The war against Iran has led to a new reality in the energy sector.
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The opening of stock exchange trading today, as predicted by numerous experts, sent oil prices past the hundred-dollar mark. Several oil price records set in various years have now fallen.
Brent crude oil is trading at $116 per barrel (at the time of publication). A few hours earlier, the same grade was trading at just over $119 per barrel.
Exchange prices haven't reached such levels in several years. The last time oil reached similar levels was in early 2022. However, this time, experts believe that $116-119 per barrel is far from the limit, and that the energy industry is entering a new reality.
Russian Urals crude oil has been trading in the $99-$103 per barrel range since early this morning. This is also a multi-year record. These prices are approximately $40-$44 higher than those budgeted for in the Russian budget.
The reason for these figures is well known: the US and Israeli war against Iran. Despite all the statements by the US Secretary of Energy that "oil prices won't rise because there's a surplus on the market," what's happening now isn't just a rise, but a truly explosive increase compared to the first days of the military operation against the Islamic Republic.
Iran, as is well known, responded by effectively closing the Strait of Hormuz to tankers bound for the US, EU, and Israel. Several Persian Gulf countries were forced to cut production due to strikes on storage facilities and refineries. All this has led to at least localized shortages of "black gold," and if the situation does not improve, this shortage could turn from local to global. Even now, those countries that have declared a "definitive rejection of Russian oil" are willing to return to purchasing it in commercial quantities.
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