Since Friday, the price of Brent Crude has crossed the $90 per barrel threshold and surged beyond $91 per barrel mark as of Sunday, reaching a six-month high.
Global crude oil prices have reported a second consecutive weekly gain, hitting six-month high levels as market observers closely monitor signs of any direct conflict between Israel and Iran, which could potentially tighten supplies.
According to reports from Oilprice.com, recent boosts in oil market sentiment are attributed to the anticipation of Iran’s retaliatory strike on Israel, a developing Mexico export shortage, and the continuation of OPEC+ cuts.
As of Sunday, Brent Crude was priced at $91.17, up from $86.80 on April 1 and $81.92 on March 12, 2024.
Over the weekend, WTI Crude was trading at approximately $87, a significant increase from as low as $77.56 a month ago. Both Brent and WTI settled on Thursday at their highest levels since October, according to Reuters.
Murban crude was priced at $91.15 on Sunday evening, compared to $73.88 in December 2023. Similarly, Nigeria’s Qua Iboe and Brass River crude stood at $95.05, up from $74.83 in December last year.
The surge in oil prices has also affected the cost of Premium Motor Spirit, with the price of a gallon rising to $2.800 over the weekend from $2.001 in December 8.
The recent upward trajectory in oil prices is fueled by investors’ concerns about potential disruptions in supply due to escalating geopolitical tensions. Both global benchmarks, Brent and WTI, registered over four percent gains in the past week after Iran vowed revenge against Israel for an attack that killed high-ranking Iranian military personnel.
Earlier in March, the rise in crude prices was attributed to a series of Ukrainian drone attacks on Russian refineries, affecting fuel output in the world’s largest exporter. However, prices dipped shortly after due to weaker United States gasoline demand data and reports of a United Nations draft resolution calling for a ceasefire in Gaza.
The sharp increase in oil prices at present reflects market players’ vigilance for any signs of direct conflict between Israel and Iran, which could further tighten supplies.
