Due to conflicts and wars in countries, the oil market around the world is already unstable. Meanwhile, the conflict between Iran and Israel in the Middle East may increase the price of fuel oil in the world market by $100 per barrel. In addition, analysts fear that if America gets involved in this conflict, it can reach up to 140 dollars.
Recently, according to a report by OilPrice.com, the price of natural gas is also increasing in line with fuel oil due to such instability around the world. Also, the price of gold and aluminum is increasing rapidly.
The Middle East is one of the world’s top oil producers and a very important region for global energy trade. Middle Eastern exporters transport about 21 million barrels of crude oil per day through the Strait of Hormuz, one-fifth of global consumption. According to a statement from the US multinational investment bank Citigroup, the price of oil could exceed $100 per barrel if the ongoing Iran-Israel tension disrupts the supply of fuel.
Again, if Iran blocks the movement of fuel oil tankers through the Strait of Hormuz, the price of each barrel may stand at 120-130 dollars. According to the calculations of the multinational financial services company Societe Generale, if the United States becomes involved in the conflict between Iran and Israel, the price of crude oil may rise to $140 per barrel.
In the meantime, crude oil prices rose to a six-month high at the beginning of this month, but fell again as details of Iran’s attack on Israel did not reveal much damage. Market experts say that if the tension increases, it will increase again.
Iran is one of the largest member countries of the Organization of the Petroleum Exporting Countries (OPEC). The country produces more than 3 million barrels of crude oil per day. A conflict with Israel would disrupt both the country’s extraction and exports. Which will affect the world market.
The Ukraine Russia conflict pushed crude oil prices above $100 per barrel on February 24, 2022, the highest in more than seven years.
The Iran-Israel conflict has now joined the Ukraine war. Not only fuel oil, but also the price of natural gas, gold and aluminum are rising due to the instability caused around the world. Also, experts believe that global shares and indices will fall in price.
Bangladesh Journal/SS
Tags: Due war conflict price natural gas increasing world market
