Oil prices in the global market are approaching historical records
Prices in the global oil market continue to rise sharply. One.uz reports on this.
In trades on October 23, the price of Brent North Sea oil, used as a benchmark, reached $113.7 per barrel, even exceeding $114 during daily trading. Although this figure is slightly lower than the short-term peaks of $118 in the spring, prices are moving rapidly toward renewing the 2022 historical record of $122 due to the intensifying geopolitical situation in the market.
Main reasons for price increase International experts attribute the rise in oil prices to serious supply disruptions and risks. Following the escalation of clashes between Saudi Arabian and Yemeni forces, "Saudi Aramco," considered the world's largest oil exporter, evacuated its employees from its headquarters located in the city of Dhahran near the Persian Gulf.
In Libya, the National Oil Corporation announced that a valve on the oil pipeline connecting the Hamada and Tahara fields with the port of Zawiya has been closed. This led to a significant reduction in the extraction volume of both fields.
As UBS analyst Giovanni Staunovo emphasizes, logistics disruptions and the excessive rise in tanker charter rates have caused a real supply shortage in the market. The widespread escalation in the Middle East poses a direct threat to oil infrastructure, forcing investors to add a large risk premium to prices.
Urals oil exceeded $100 The rise in global market prices has also directly impacted the price of Russian oil. Russia's Urals brand oil is being sold in markets at prices higher than $100 per barrel.
According to Reuters, the average price indicator for Urals in October is expected to be 60 percent higher than the Russian government's initial plans and expectations. As noted by XS.com analyst Lin Tran, market participants are currently focusing on how long the existing disruptions will last.
If infrastructure restoration is delayed, oil prices could rise even higher than the $122 peak.
