Oil prices in the US ended the session above $100. per barrel for the first time since the United States and Israel began the war with Iran.
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WTI crude oil prices. A psychological barrier has broken in the US
Oil futures West Texas Intermediate (WTI) increased to $104. per barrel, the highest closing level since July 2022
Meanwhile, oil Brent is on track to achieve record percentage growth in March. May Brent futures rose to $114. per barrel.
Price: $100 is a key psychological level observed by traders and other market participants. Before the conflict in the Middle East began, the raw material cost approximately $70.
Brent crude oil and WTI crude oil
WTI stands for West Texas Intermediatea type of oil extracted mainly in the USA, in Texas. It is very “light” and “sweet”.
Brent, on the other hand, comes from fields in the North Sea and although this type of oil is slightly heavier, it is also considered a high-quality raw material. Both grades are global benchmarks, i.e. reference points for the valuation of crude oil in the world. Due to, among others, Due to its characteristics, the price of Brent crude oil is usually slightly more expensive than WTI.
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Oil prices skyrocketed
Oil prices have surged as the war between the US, Israel and Iran and the blockade of the Strait of Hormuz upended global markets, raising fears of a simultaneous rise in inflation and slowing economic growth.
The conflict is now in its fifth week and shows no signs of abating despite diplomatic pressure from Washington last week, with deliveries through the critical Strait of Hormuz still close to a complete halt.
There is no end in sight to the war in the Middle East
Donald Trump said on Monday that the United States was in talks with a “new and more reasonable regime” to end “military operations” in Iran.
Despite assurances about progress in the talks the US president threatened the “total destruction” of the plantoil wells and even water desalination plants in Iran if Tehran does not reach an agreement with the United States and does not open the Strait of Hormuz.
Iran's Foreign Ministry said it had not held any negotiations with the United States since the beginning of the war.
Source: Bloomberg, Business Insider Polska
