Brent Breaks $111 as Oil Markets Brace for Shortages
The Middle East Oil Crisis Has Already Cost Global Businesses $25 Billion Josh Owens is the Content Director at Oilprice.com and a veteran energy journalist with over a decade of experience covering global energy markets and geopolitics.… Oil prices climbed in early Asian trade on Monday as drone attacks on both the UAE and Saudi Arabia further dimmed hopes of any de-escalation in the region.
The lack of a breakthrough on an Iran agreement during Trump's visit to China also added to upward pressure for oil prices, with fears of major global shortages now rising rapidly.
At the time of writing,WTI front-month futureswere trading at $108.20 per barrel, up 2.59% on the session, whileBrenthad climbed to $111.50 per barrel, up 2.03%.
The latestdrone strikesincluded an attack that led to a fire near the Barakah nuclear power plant in the UAE, with the country's defense ministry saying two other drones had been successfully dealt with.
Meanwhile, Saudi Arabia said it had intercepted three drones that entered its airspace from Iraq.
UAE officials reported that the Barakah strike hit an electrical generator outside the inner perimeter of the nuclear facility, with no radiation leak or injuries.
These attacks are just the latest in a string of attacks on U.S.
allies in the region after President TrumplaunchedProject Freedom, his latest attempt to reopen the Strait of Hormuz for trade.
While there had been some optimism that Trump's visit to China last week might result in President Xi using his influence with Iran to reopen the Strait, the lack of a breakthrough has reignited concerns of major shortages.
Over the weekend, Trump was once again threatening Iran to negotiate or face the consequences.
As physical oil markets continue to tighten, nearly 80 countries have now introduced emergency measures to protect their economies from the looming energy crisis.
According to theFinancial Times, economists at Aberdeen are now examining a scenario where Brent crude surges to $180 per barrel if traffic through the Strait of Hormuz remains constrained for an extended period.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | ▲ +0.34% |
| WTI Crude | $96.90/bbl | ▲ +0.21% |
| EN590 Diesel | $846/MT | ▲ +0.18% |
| Jet Fuel A-1 | $1090/MT | ▲ +0.55% |
| Mazut M100 | $450/MT | ▼ -0.15% |
| Bitumen 60/70 | $470/MT | ▲ +0.08% |
| Sulphur Gran 99.5% | $470/MT | ▼ -0.44% |
| Urea 46% Gran | $650/MT | ▲ +1.12% |
| NPK 16-16-16 | $460/MT | ▼ -0.28% |
| Nat Gas TTF | $15.42/MMBtu | ▲ +0.92% |
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