Global oil prices rise amid geopolitical tensions
Amid the escalation of the conflict in the Middle East and uncertainty regarding shipping in the Strait of Hormuz, oil prices have shown significant growth over the week.
Abdulrahman Sadikhli2 min read
Global energy prices have risen noticeably against the backdrop of renewed hostilities in the Middle East and concerns regarding the stability of supplies through the Strait of Hormuz. By the end of the week, the price of oil may show an increase of approximately 10%.
The price of Azerbaijani Azeri Light crude at the Italian port of Augusta (CIF basis) increased by $3.02 (2.96%), reaching $104.98 per barrel. At the Turkish port of Ceyhan (FOB basis), the price of a barrel of Azeri Light rose by $2.98 (3%), reaching $102.19.
Price dynamics also affected other grades: the cost of Russian Urals crude rose by $3.33 (4.41%) to $78.81 per barrel. North Sea Dated Brent crude increased by $3.2 (3.25%), reaching $101.69 per barrel.
The situation in the region escalated after the US launched new strikes on Iran, to which Tehran responded with threats against American bases and vessels in the Strait of Hormuz. On Wednesday, six cargo ships passed through the strait, which is significantly lower than the average of 13 ships over the last 10 days.
Analysts note that the damage caused to oil refineries in the Middle East and Russia, combined with the limited capacity of other regions to compensate for the deficit, could keep global fuel prices at a high level until next year. In the US, diesel prices have reached their highest level since mid-2022, and fuel stocks in Europe remain significantly below seasonal norms.
It is worth noting that the average oil price is set at $65 per barrel in Azerbaijan's 2026 state budget.
Source: az.trend.az
