Middle East Crisis Oil Market

Brent Oil Rushes 10 Percent: “Could Rise Above $100”

The price of Brent oil is rushing 10 percent to around $80 per barrel, when over-the-counter trading outside the stock exchange began on Sunday afternoon, Reuters reports.

Some analysts expect the price to rise to upwards of $100 per barrel after the outbreak of war in the Middle East. Among them are analysts at Barclays and ICIS.

ICIS is signaling that the price could even rise above $100, writes Reuters.

Rystad Energy predicts an increase of $20 to around $93 per barrel.

Maersk stops all traffic in Hormuz: “Safety our priority”

Danish shipping giant Maersk is stopping all traffic through the Strait of Hormuz after the weekend’s escalation in the region. This is reported by AFP. The decision is in effect until further notice.

“The safety of our crews, ships and customers continues to be our top priority,” the company wrote in a statement.

Competitors such as Hapag-Lloyd and CMA CGM have announced the same decision during the day.

Earlier on Sunday, Reuters reported that at least 150 tankers were anchored in open waters in the Persian Gulf.

Traffic through the Strait of Hormuz is vital to the global oil market and disruptions or a shutdown have major consequences. 

US: No Plans to Calm Down Our Reserves

Oil prices are expected to surge when futures trading opens in Asia on Sunday evening, but the US has no plans to use its oil reserves to calm the market.

An unnamed official at the US Department of Energy tells the Financial Times that there have been “no discussions at all” about the reserves.

The US reserves of 415 million barrels of oil could theoretically be used to dampen price rises, but that is not enough to cover any potential loss if Iran closes the Strait of Hormuz, the newspaper writes.

Iranian media reported on Saturday that the strait is “basically closed”, after the Revolutionary Guard on Saturday told waiting ships that no one would be allowed through.