The price of West Texas Intermediate crude rose 15 percent to $104.61 a barrel at the opening of markets after a record 36 percent increase accumulated last week following the start of the US and Israeli airstrikes on Iran.
Brent crude is also now trading above $102, while the United Arab Emirates, Kuwait, and Iraq announced cuts in their crude production, and the Strait of Hormuz, although not officially closed, is no longer a transit point for oil extracted from the Persian Gulf countries, Bloomberg reports.
The conflict has also driven up the price of natural gas and is already affecting retail prices in the United States and Europe. Retail gasoline prices have reached levels not seen since August 2014, which could politically affect President Donald Trump, who faces midterm elections in November that could influence his agenda.
Brent crude is also trading above $102, while the United Arab Emirates, Kuwait, and Iraq have announced cuts in their crude production. Meanwhile, there are no signs that the war will end, and there have even been exchanges of threats of attacks against oil infrastructure. Saudi Arabia destroyed drones heading towards the Shaiba oil field, which produces one million barrels per day.
Last week, Saudi authorities halted production at the Ras Tanura refinery, the country’s largest, and are looking for ways to ship oil to Red Sea ports to avoid the Strait of Hormuz.
Meanwhile, the Chinese government ordered a halt to diesel and gasoline exports, and South Korea is considering a price cap on fuel.
