Welcome: FOSHAN BANDON NEW ENERGY TECHNOLOGY CO., LTD.
Home      News       Rumbling Artillery Fire in the Middle Ea…

News

Rumbling Artillery Fire in the Middle East Boosts Oil Prices to Hit US$80

At US$78.40 per barrel, the current historical high may be just a passing smoke. Although the peak of oil prices is difficult to estimate, an oil price of US$80/barrel is just around the corner.

Amid market concerns about the impact of the situation in the Middle East on oil supply, during Asian trading last Friday, the price of light crude oil for August delivery on the New York Mercantile Exchange touched $78.40, erasing the earlier record of $77.92 set in New York. That day, the closing price was $77.03, the highest closing price in history for crude oil futures.

At the same time, Organization of the Petroleum Exporting Countries (OPEC) oil prices also rose strongly. According to the Vienna-based OPEC Secretariat's announcement on July 14, the average price of the organization's 11 market-supervised crude oil basket rose to US$70.38 per barrel on the 13th, an increase of US$1.72 from the previous trading day.

With the new round of sharp rise in crude oil prices, more market participants believe that oil prices may reach US$80 per barrel, and the possibility of rising to US$100 per barrel is also high.

Since 1/3 of the world's oil production comes from the Middle East, the local war situation directly affects the rise and fall of oil prices.

In addition, the Iranian nuclear issue has not been resolved for a long time, which has also exacerbated investors' concerns. These factors combined have driven oil prices sharply higher.

Investors are currently paying close attention to the situation in the Middle East, the direction of the Iranian nuclear issue, and weather changes in the crude oil mining areas of the U.S. Gulf of Mexico. An analyst raised two possibilities for the recent oil price trend: if the U.S. Gulf of Mexico is hit by a hurricane, international oil prices will easily exceed $80 per barrel; but if the impasse on the Iranian nuclear issue shows signs of easing, the price pressure on the international crude oil market will also increase. It will ease quickly.

Barry, director of London Energy Market Consultants, said that although Israel and Lebanon are both non-oil-producing countries, the two countries are located in the core of the Middle East, which produces one-third of the world's oil production, making oil trading countries worried that the conflict will spread. Barry estimates that as long as the United States encounters a hurricane, oil prices can break through the $80 mark. In fact, the crude oil futures contract from December to August next year has exceeded 80 US dollars a barrel.

Venezuelan Energy Minister Ramirez also said that international oil prices will continue to rise in the future. He said that it was the United States' support for Israel that led to higher oil prices. Under the aggressive foreign policy of the United States, rising oil prices were inevitable.

OPEC has expressed concern about the rising oil prices in the international market in recent days. On July 14, OPEC issued a press communiqué, stating that the current supply and demand for crude oil in the market is still balanced, and OPEC is committed to taking all measures to stabilize oil prices at a reasonable level. To this end, the communiqué calls on other crude oil producing and consuming countries to provide support.