Oil prices continued going higher over the weekend as West Texas Intermediate Crude oil hit $111.56 in futures markets early this morning with gas prices in Europe also expected to open higher. The last time that oil traded at these levels was in July 2022 after Russia invaded Ukraine earlier in the year.
Production across the Gulf, Saudi Arabia and Iraq has been disrupted while tankers passing from the Strait of Hormuz have gone down by 90% with many oil tankers stranded outside the Strait unable to conduct loading operations. Some oil tankers destined to China are being allowed to load oil from Kharg Island, Iran’s main oil-export terminal, and exit the Strait of Hormuz safely. Western commercial vessels have been targeted by Iranian suicide drones including a Maltese-flagged tanker Prima. Saudi Arabia’s Ras Tanura oil refinery and terminal remain closed for loading operations.
Israel also targeted Iran’s oil facilities in Tehran causing an environmental disaster.
US Energy Secretary Chris Wright said that the US government is trying to ensure a quick restoration of oil and gas industry activity in the region and also said that the US may provide security to commercial vessels passing through the Strait of Hormuz.
Newsroom
Leave a Reply