The impact of the increasing conflict in West Asia is clearly visible on the global oil market. On Thursday, crude oil prices in the international market again crossed $ 100 per barrel.
Nine percent jump in the price of Brent crude
The price of international benchmark Brent crude rose more than nine percent to $100.76 a barrel, while US benchmark WTI crude jumped nearly 9 percent to nearly $95 a barrel.
What decision did the IEA take?
This rise in oil prices has come at a time when the International Energy Agency (IEA) has decided to release crude oil from emergency reserves to keep prices under control. On Wednesday, 32 member countries of the IEA together announced the release of 400 million barrels of crude oil from the emergency reserve into the market, which is considered to be the largest release in the history of the agency.
US Department of Energy announcement
Apart from this, the US Energy Department has also announced the release of 172 million barrels of oil from the Strategic Petroleum Reserve. According to US Energy Secretary Chris Wright, the supply of oil may start from next week and it will take about 120 days to be completely released. Earlier, due to increasing tension in West Asia, the price of crude oil had reached $ 119 per barrel, although later it fell to around $ 80 per barrel.
Experts’ opinion regarding the Strait of Hormuz
According to experts, the main reason for the current rise is the increasing tension around the Strait of Hormuz and the alleged obstruction in the movement of ships. The incidents of targeting of oil tankers amid the increasing conflict between America, Israel and Iran have increased the concerns about the supply in the market. The Strait of Hormuz is a narrow but very important sea route of West Asia, through which about 20 percent of the total crude oil trade of the world passes. In such a situation, increasing tension in this region has a direct impact on the global oil market and prices.