"It's not a silver bullet to solve everything. You have to solve the underlying problem. Markets trade on expectations, and so far they are on the concerned side. The IEA's release may offer some relief in the short-term, it will likely have a minimal effect on lowering prices if the Strait of Hormuz remains effectively closed."
"Traffic through the strait, which is bordered by Iran, Oman and the United Arab Emirates, has come to an effective halt amid Tehran's threats against shipping in the region, blocking about one-fifth of the global oil supply. Iran's Islamic Revolutionary Guard Corps said on Wednesday that it would not allow even one litre of oil through the waterway and the world should expect oil to soar to $200 a barrel."
Global oil prices continue climbing despite the International Energy Agency's announcement of the largest emergency reserve release in history. Brent crude rose approximately 15 percent following the IEA's plan to release 400 million barrels to stabilize markets amid the U.S.-Israel conflict with Iran. Oil prices reached about $100 per barrel, up over 35 percent since the war began. Market analysts indicate the IEA's release will provide only short-term relief, as the fundamental issue remains the effective closure of the Strait of Hormuz, which blocks approximately one-fifth of global oil supply. Iran's Islamic Revolutionary Guard Corps threatened to prevent all oil shipments through the waterway, with expectations of prices reaching $200 per barrel. Multiple commercial ships and oil tankers faced attacks in the region.
Read at www.aljazeera.com
Unable to calculate read time
Collection
[
|
...
]