Brent oil hits four-year high — Reuters
Photo: Brent crude oil prices hit a four-year high (Getty Images)
Global oil prices jumped to a four-year high today, April 30, reaching over $122 per barrel, according to Reuters.
Read also: Oil prices slide after UAE quits OPEC
According to experts, the main reason for the price increase is concern that the conflict between the US and Iran could escalate and lead to prolonged disruptions in energy supplies from the Middle East.
Brent crude futures rose by $3.73, or 3.2%, to $121.76 per barrel, reaching an intraday high of $126.41, the highest level since March 9, 2022.
The June futures contract expires on Thursday. The more actively traded July contract stood at $111.89, up $1.45, or 1.3%.
Thus, the price of Brent crude has doubled since the start of the US-Israeli attack on Iran on February 28, while the price of the US benchmark West Texas Intermediate crude has risen by about 90% due to the effective closure of the Strait of Hormuz, through which about one-fifth of the world’s oil and liquefied natural gas is transported.
Rising oil prices risk triggering a new surge in global inflation and higher gasoline prices in the US ahead of the midterm elections later this year.
"Oil prices need little encouragement to tempt them higher at present. For those who do not think Brent prices have the potential to reach $150 a barrel, you ought to look away now," says John Evans, an analyst at oil broker PVM.
WTI crude oil futures posted a smaller gain, rising by $1.49, or 1.4%, to $108.37. The contract had earlier reached $110.93, its highest level since April 7.
Both indicators have been rising for the fourth consecutive month, reflecting concerns that the conflict with Iran could choke global oil supplies in the coming months.
Backfround
On April 29, global oil prices fell after several days of gains as investors reacted positively to the fallout from the UAE’s surprise decision to leave OPEC.
On April 28, the UAE announced its withdrawal from OPEC and OPEC+ at the worst possible moment for the oil cartel, while the war with Iran is paralyzing supplies through the Strait of Hormuz.
The timing of the withdrawal is extremely painful for OPEC. Gulf countries are already facing difficulties exporting through the Strait of Hormuz, a narrow sea passage between Iran and Oman.
