The price of Brent oil has increased: what caused the increase in price
FILE PHOTO: A meter shows near zero-level pressure at a line production station on a Druzhba pipeline in Brody, some 460 km (286 miles) west of Kiev January 10, 2007. REUTERS/Gleb Garanich/File Photo
The price of Brent crude oil rose in trading on Monday, July 14. For the first time in a month, the price exceeded $87 per barrel amid worsening relations between the United States and Iran, as well as new attacks on shipping in the Strait of Hormuz.
This is reported by Bloomberg.
It is known that the leading international brand of oil has increased in price by more than 5%. The prices of Middle Eastern oil and a number of other key reference grades have also increased.
In total, the price of Brent increased by more than 14% over the week.
It is noted that the global oil market has a certain supply of raw materials thanks to stable supplies from the Persian Gulf. At the same time, spare capacity remains limited, so the market is very sensitive to any risks that could lead to a supply shortage and further price increases.
The United Arab Emirates (UAE) reported that two of its tankers were attacked while passing through the Strait of Hormuz in radio silence.
Also, according to the agency, visible oil supplies have decreased in recent days.
Additionally, ships are increasingly being seen passing through the Strait of Hormuz with their transponders turned off, making it more difficult to track oil flows as ships take extra security measures when passing through the strait.
The rise in Brent prices was accompanied by sharp increases in other benchmarks. In particular, the price of Murban from the UAE rose by more than $2 per barrel. At one point, the increase exceeded $2.70, although this figure usually changes by only a few cents per day.
Earlier, it was reported that Iranian cruise missiles hit two tankers flying the flag of the United Arab Emirates in the Strait of Hormuz. The attack killed one crew member and injured eight others, including two Ukrainian citizens.
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